Deckers Outdoor Corp (NYSE:DECK) Tops Wall Street Estimates

Deckers Outdoor Corp (NYSE:DECK) stock rallies 13.34% (As on May 20, 11:08:08 AM UTC-4, Source: Google Finance) after the company has beaten the Wall Street’s expectations for the fourth quarter of FY 22. Wholesale net sales increased 37.6% to $448.8 million compared to $326.1 million. Direct-to-Consumer (DTC) net sales increased 22.2% to $287.2 million compared to $235.1 million. Comparable DTC net sales increased 19.3%. Domestic net sales increased 37.4% to $521.0 million compared to $379.2 million. International net sales increased 18.2% to $215.1 million compared to $181.9 million. DECK held Cash and cash equivalents of $843.5 million at the end of the quarter. Inventories were $506.8 million compared to $278.2 million a year ago. During the quarter, the Company repurchased ~308 thousand shares for $90.0 million at an average price paid per share of $292.51. During full fiscal year 2022, the Company repurchased approximately 1.044 million shares of its common stock for a total of $356.7 million at an average price paid per share of $341.77. As of March 31, 2022, the Company had $454.0 million remaining under its stock repurchase authorization.

DECK in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.51, beating the analysts’ estimates for the adjusted earnings per share of $1.32, according to Analysts polled by Refinitiv. The company had reported the adjusted revenue growth of 31.2 percent to $736 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $639 million. The gross margin declined to 48.7% from 53.2% in 4Q21. The operating income improved by 48.8% Y/Y to $81.3 million, and the margin expanded by 131 bps to 11.1%.

Moreover, UGG brand net sales increased 24.7% to $374.6 million compared to $300.5 million. HOKA brand net sales increased 59.7% to $283.5 million compared to $177.5 million. Teva brand net sales decreased 8.8% to $54.8 million compared to $60.2 million. Sanuk brand net sales decreased 1.7% to $11.9 million compared to $12.1 million. Other brands, primarily composed of Koolaburra, net sales increased 2.4% to $11.2 million compared to $10.9 million.

For fiscal 2023, Deckers Outdoor expects Net sales of $3.45 billion to $3.50 billion vs. a consensus of $3.45 billion, Gross margin of ~51.5%, and SG&A expenses as a percentage of sales of ~34%. It expects an operating margin of 17.5% to 18.0% and Diluted earnings per share of $17.40 to $18.25, vs. a consensus of $8.34.

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