NYSE$DECK

Deckers Outdoor Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Deckers Brands reported a record sales and raised its full year outlook.

Deckers Brands reported a 7.4% increase in net sales, reaching a record $938.7 million for the third quarter of fiscal year 2020. The company also raised its full-year earnings per share outlook to a range of $9.40 to $9.50.

  • Net sales increased by 7.4% to $938.7 million compared to the same period last year.
  • UGG brand net sales increased by 2.6% to $781.1 million.
  • HOKA ONE ONE brand net sales increased by 63.6% to $93.1 million.
  • Diluted earnings per share was $7.14 compared to $6.68 for the same period last year.

Headline financials

Total Revenue

$939M

Previous: $874M+7.4%
EPS (adj)

$1.19

Previous: $1.10+8.2%
Capital Expenditures

-$23.7M

Previous: -$21.8M-8.4%
Free Cash Flow

$178M

Previous: $175M+1.9%
Net Income

$202M

Previous: $196M+2.7%
Operating Income

$256M

Previous: $245M+4.5%
Gross Profit

$508M

Previous: $470M+8.0%
Cash & Equivalents

$617M

Previous: $516M+19.6%
Total Assets

$1.89B

Previous: $1.54B+22.4%
Stock-Based Comp

$4.37M

Previous: $4.04M+8.1%

Revenue & EPS history

Deckers · Revenue · Quarterly

$939M

Q3 2020+7.4%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Deckers · $2.24B total across 5 segments · Q4 2027

  • HOKA
    $671M
  • Wholesale
    $655M
  • Direct-to-Consumer
    $464M
  • UGG
    $409M
  • Other brands
    $39.5M

Forward guidance

The company provided its financial outlook for the fourth fiscal quarter ending March 31, 2020 and raised its outlook for the full fiscal year ending March 31, 2020.

Tailwinds

  • Net sales are now expected to be in the range of $2.150 billion to $2.160 billion.
  • Gross margin is now expected to be approximately 51.5%.
  • Operating margin is now expected to be at or slightly better than 15.5%.
  • Effective tax rate expected to be approximately 20.5%.
  • Diluted earnings per share now expected to be in the range of $9.40 to $9.50.

Headwinds

  • Net sales are expected to be in the range of $392 million to $402 million.
  • Diluted earnings per share are expected to be in the range of $0.35 to $0.45.
  • SG&A expenses as a percentage of sales are projected to be slightly lower than 36.0%.
  • The earnings per share guidance excludes any impact from additional share repurchases.
  • Forward-looking statements are subject to considerable risks and uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.6%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+5.5%

Avg return

30 days after

53%

37 / 70 earnings

Positive

+21.1%

Q3 2013

Best reaction

-23.3%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2027
Q3 2026+6.7%+12.4%+17.4%
Q2 2026-15.2%-18.2%-17.0%
Q1 2026+11.3%+5.4%+4.0%
Q4 2025-19.9%-17.3%-19.4%
Q3 2025-20.5%-22.7%-37.5%
Q2 2025+11.4%+12.3%+27.3%
Q1 2025+5.8%+7.7%+15.2%
Q4 2024+15.7%+20.9%+9.8%
Q3 2024+17.0%+9.5%+19.8%
Q2 2024+17.0%+21.3%+29.4%
Q1 2024-4.3%-2.8%-6.5%
Q4 2023+5.6%+11.1%+14.9%
Q3 2023-3.3%-2.5%+0.0%
Q2 2023-4.4%+0.4%+5.5%
Q1 2023+11.3%+9.3%+16.7%
Q4 2022+12.3%+6.0%+10.1%
Q3 2022-8.1%-9.2%-25.7%
Q2 2022+5.1%+5.1%+10.2%
Q1 2022+1.6%+6.4%+4.7%
Q4 2021+3.9%+3.8%+0.7%
Q3 2021+2.3%+5.1%+2.2%
Q2 2021+1.3%+0.6%+4.0%
Q1 2021-4.4%-6.1%-3.9%
Q4 2020+10.3%+10.8%+20.6%
Q3 2020+8.1%+7.4%-1.6%
Q2 2020-2.2%-2.9%+3.4%
Q1 2020-10.9%-13.1%-23.9%
Q4 2019+2.2%+0.5%+16.9%
Q3 2019+11.6%+9.6%+16.3%
Q2 2019+8.4%+20.9%+15.1%
Q1 2019-6.4%-4.9%-0.5%
Q4 2018+4.4%+4.5%+15.9%
Q3 2018+9.2%+10.8%+11.9%
Q2 2018+5.5%-0.6%+7.6%
Q1 2018+2.6%+3.1%-0.4%
Q4 2017+15.7%+16.9%+16.0%
Q3 2017-18.0%-20.9%-3.7%
Q2 2017+5.2%-1.0%+23.6%
Q1 2017+3.6%-2.0%+5.1%
Q4 2016+8.7%+7.4%+14.2%
Q3 2016-4.6%
Q2 2016+6.7%
Q1 2016+4.9%
Q4 2015-4.8%
Q3 2015-18.9%
Q3 2014-2.7%
Q2 2015-9.6%
Q2 2014-0.2%
Q1 2015+6.5%
Q4 2014+5.6%
Q1 2014+2.7%
Q4 2013-9.7%
Q3 2013+21.1%
Q2 2013-7.5%
Q1 2013-8.1%
Q4 2012+15.5%
Q3 2012-20.7%
Q2 2012+9.7%
Q1 2012-23.3%
Q4 2011+4.0%
Q3 2011-8.3%
Q2 2011-6.2%
Q1 2010-0.1%
Q1 2011-0.1%
Q4 2008-4.1%
Q3 2009-1.5%
Q3 2010-1.5%
Q4 2009-1.9%
Q2 2009-1.9%
Q2 2010-1.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro