Updates from the conference call throughout

By Juveria Tabassum

Jan 30 (Reuters) - Deckers Outdoor's DECK.N annual sales forecast raise fell short of investors' lofty expectations following a strong holiday quarter, sending the UGG boots maker's shares tumbling in extended trade.

The company also said it would wind down its Koolaburra brand, just months after selling its casual sandal and slip-ons footwear brand Sanuk to focus on Hoka and UGG.

The strength in demand for the two brands has allowed Deckers to continue selling them at full price despite a deal-heavy holiday season. Their growing popularity has also helped gain market share from bigger rival Nike.

The company's stock slumped 16% in extended trade after hitting a record high in Thursday's session.

Sales for UGG, which constituted 68% of the company's total revenue in the third quarter, grew 16%.

Deckers' quarterly revenue rose 17% to $1.83 billion, beating analysts' average estimate of $1.73 billion, according to data compiled by LSEG. Its margin jumped to 60.3%.

However, lower available inventory for the UGG brand in the fourth quarter could limit sales, company executives warned on a post-earnings call.

Deckers raised its annual net sales forecast for a second time this year. It now expects an increase of about 15%, up from a close-to-12% rise forecast previously. Its new forecast was in line with Wall Street estimates.

"The guidance looks pretty conservative and considering the beat, it's bit of a negative read into the out quarter," said Drake MacFarlane, an analyst at MScience. "Given the magnitude of the beat, it's not a really good read for the remainder of fiscal 2025."

The success of Hoka and UGG has helped Deckers post double-digit revenue growth for nearly seven quarters.

Markdowns could increase for Hoka in the fourth quarter, executives said, as the company moves more inventory ahead of new product launches for the banner this month.

Net sales for Hoka increased 23.7% in the holiday quarter, less than the 34.7% growth reported in the second quarter.

Sales at the company's Teva banner and its other brands fell 6% and 16.6%, respectively.

Deckers expects annual earnings per share of $5.75 to $5.80, compared with its prior forecast of $5.15 to $5.25.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar)

((Juveria.Tabassum@thomsonreuters.com;))