Published by Global Banking & Finance Review®
Posted on January 31, 2025
2 min readLast updated: January 26, 2026
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Deckers Outdoor's holiday sales beat expectations, driven by Hoka shoes. However, an in-line annual forecast led to a share price drop.
By Juveria Tabassum
(Reuters) -Deckers Outdoor on Thursday beat third-quarter sales estimates on robust holiday demand for its Hoka running shoes, but an in-line annual forecast caused the footwear maker's shares to tumble 17% in extended trading.
Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category. The brand, which retails for up to $300 in the United States, have also enjoyed full-price sales.
This drove up the company's third-quarter revenue by 17% to $1.83 billion, beating analysts' average estimate of $1.73 billion, according to data compiled by LSEG. Deckers also raised its annual net sales forecast for a second time this year.
"The guidance looks pretty conservative and considering the beat, it's bit of a negative read into the out quarter," said Drake MacFarlane, analyst at MScience.
The popularity of the Hoka shoes and the success of the company's UGG boots and sandals has helped it post double-digit revenue growth for nearly seven quarters.
The company now expects annual net sales to increase about 15% to $4.9 billion, compared with its prior expectation of about 12% growth to $4.8 billion. Analysts estimated an increase of 14.9% to $4.93 billion.
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)
Deckers Outdoor reported a third-quarter revenue of $1.83 billion, which was a 17% increase compared to the previous year.
Hoka shoes have been gaining market share from brands like Nike and are popular for their oversized soles, retailing for up to $300 in the United States.
Deckers expects annual net sales to increase about 15% to $4.9 billion, an increase from its prior expectation of 12% growth.
Deckers anticipates annual earnings per share of between $5.75 and $5.80, up from the previous forecast of $5.15 to $5.25.
The popularity of Hoka shoes, along with the success of UGG boots and sandals, has contributed to double-digit revenue growth for nearly seven quarters.
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