MW Deckers hiked its outlook, but the stock is tumbling after a sizable run higher

By Bill Peters

Sales of Deckers footwear brands Ugg and Hoka increased during the third quarter

Deckers Brands on Thursday raised its full-year outlook and reported third-quarter results that topped estimates, helped by demand for Ugg boots and Hoka running shoes, but shares sank in after-hours trade.

The company - also parent to the maker of Teva sandals and the all-day shoe brand Ahnu - said it expects sales for its full fiscal year to increase around 15% to $4.9 billion, a bit up from the $4.8 billion it forecast in October. According to FactSet, Wall Street analysts expect sales of $4.93 billion for Deckers's $(DECK)$ full fiscal year, which ends on March 31.

Deckers also forecast full-fiscal-year earnings per share of $5.75 to $5.80, up from the prior outlook for $5.15 to $5.25 and above the FactSet consensus estimate of $5.66.

Shares tumbled 16.8% after hours. The selloff follows a 73% gain for the stock over the past 12 months, which has of late had the stock hovering near record highs.

For the third quarter, Deckers sales rose 17.1% to $1.83 billion, above the consensus analyst expectation of $1.73 billion. The company earned $3 a share, above the estimated $2.58.

"UGG continued to experience incredible global momentum, with the brand's iconic franchises capturing strong full price consumer demand across all regions," Chief Executive Stefano Caroti said in a statement. "At the same time, HOKA delivered impressive results consistent with our strategy, remaining focused on scaling through innovative performance products."

This is a developing story. Check back for updates.

-Bill Peters

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January 30, 2025 17:15 ET (22:15 GMT)

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