Deckers FQ3 results, 2024 guidance beats Street expectations

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Deckers (NYSE:DECK) is on the upswing Thursday, snapping a two-day losing streak after the company reported solid results for fiscal Q3 that included record revenue for the quarter and 2024 guidance that topped Street expectations.

The company also announced that CEO Dave Powers is leaving the company at the end of this summer. He’ll be replaced by Stefano Caroti, currently serving as Deckers’ COO.

For fiscal Q3, Deckers earned a profit of $15.11 per share on revenue of $1.56B. This is up from $10.48 and $1.35B last year, respectively, beating estimates by $3.45 and $110M.

Net sales increased 16% as direct-to-consumer sales were up 22.7% and wholesale sales were up 8.6% in Q3. Domestic sales increased 15.6% and international sales were up 16.7%.

The company’s gross margin widened to 58.7% from 53.0%.

For 2024, Deckers expects a profit of $26.25-$26.50 per share on net sales of ~$4.15B versus the Street forecast of $24.25 per share profit on $4.11B in sales.

Gross margin for 2024 is expected at 54.5% with operating margin at 20%.

Shares were higher by 5% after Thursday’s close.

Harry Byrne

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