UPDATE 1-Deckers Outdoor raises annual profit forecast on direct-to-consumer bet
Deckers Outdoor Corporation DECK | 0.00 | |
NIKE, Inc. Class B NKE | 0.00 |
Adds details throughout
July 23 (Reuters) - Deckers Outdoor DECK.N raised its annual profit forecast on Thursday, betting on resilient consumer demand for its running shoes especially in its high margin direct-to-consumer sales.
Shares of the company, however, fell 4% in after market trading after company maintained its annual sales forecast.
The company expects earnings per share between $7.35 and $7.50 for fiscal year 2027, compared with its previous forecast of $7.30 to $7.45.
New product launches and continued expansion across both wholesale and direct-to-consumer channels have helped the company attract higher-income consumers who remain willing to spend despite broader economic pressures, allowing it to outperform many discretionary retail peers.
Deckers Outdoor has continued to gain market share in the athletic footwear market, as larger rivals such as Nike NKE.N grapple with softer demand for legacy sneaker lines including Dunk and Air Jordan.
The company's first-quarter direct-to-consumer net sales increased 8.4% compared to 0.5% last year.
It earned a quarterly profit of 94 cents per share in the quarter ended June 30, compared with analysts' estimates of 87 cents per share.
