UGG Parent Deckers Outdoor Corp. Shares Surged More Than 10%

After the expected three quarter results on Thursday,

(NYSE:DECK) share prices surged more than 10% on Friday.

According to the world clothing and shoe net, the three quarter of December 31st was headquartered in California.

The Group recorded a net profit of US $196 million 400 thousand, which rose 127.4% compared to the 86 million 341 thousand US dollar in the same period of 2018 fiscal year, and the earnings per share increased from US $2.69 to US $6.68. After adjustment, it increased from 4.97 US dollars to US $6.59, increasing by 32.6%, far exceeding the expected US $5.31.

In the three quarter, California company raised its adj EPS forecast to 7.85-7.95 US dollar in the current fiscal year, which was expected to be US $6.65-6.85.

The increase is the company's two consecutive quarterly surge in annual expectations.

In the statement, Group CEO Dave Powers commended the core brand UGG for providing convincing products to consumers, while HOKA ONE ONE and Koolaburra two brands also provided impetus for growth.

He also said that the company's board of directors will repurchase $261 million shares, plus the remaining $89 million of the buyback plan, and will buy back $350 million in total.

The expected profit performance and the stimulus of the buyback plan stimulated Deckers Outdoor Corp. (NYSE:DECK) shares to jump 12.88% dollars and 145 dollars on Friday. The highest gain was 14.36% at $146.90, a 52 week and a record high.

As the most prosperous season of the year, the three quarter single quarter Deckers Outdoor Corp. Corp. recorded a revenue of US $873 million 800 thousand, an increase of 7.8% over the same period of 810 million 500 thousand US dollars in 2018. The single quarter revenue accounted for 53.7% of the 1 billion 626 million 300 thousand US dollar income in the first three quarters, which is higher than the market expected US $826 million 900 thousand.

During the brand period, the revenue increased by 3.6% to 761 million dollars, and HOKA ONE ONE continued to perform very well. The single quarter revenue increased by 79.2% to 56 million 900 thousand dollars, Teva Teva increased 17.5% to 22 million 900 thousand US dollars, while Sanuk sales fell 7% to 12 million 900 thousand dollars.

Wholesale business rose by 12.5% to 482 million 200 thousand dollars during the reporting period, while DTC sales rose 2.6% to $391 million 600 thousand, including 1.4% growth in same store sales.

Strong quarterly results were driven mainly by 14.2% of the local market, while international market sales recorded a 2.6% drop, and North American and international market quarterly earnings were $501 million 700 thousand and $308 million 800 thousand, respectively.

UGG brand new endorsement Angelababy Angela Baby did not bring any boost to the brand Chinese market. On the contrary, the weakening of consumer confidence in macroeconomic change and the continued warm weather in China, especially the South market, brought some challenges to the brand in the three quarter of the Chinese market.

Group CEO Dave Powers Powers also said that the supply chain was being actively pferred from the Chinese market, and that only 1/4 of the products were manufactured by the Chinese market. It is expected that the current tariff policy will not affect the company's business.

In the three quarter, the gross profit margin of the group rose sharply to 53.8%, an improvement of 160 basis points compared with the same period last year. The gross profit margin is expected to exceed 50.5% in the whole year.

For the current fourth quarter, the California company is expected to adjust EPS 0-0.10 to US $388 million 800 thousand, and revenue is expected to be 3.600-3.740 billion, lower than the market expected $US.

The annual revenue is expected to be 19.86- 20.00 billion, and the operating profit margin is expected to be 14.5-14.7%.

Shares of Deckers Outdoor Corp. (NYSE:DECK) were closed at $14 billion 188 million on Friday, up 10.46%, up 10.89% so far this year, rising by 49.50% in the past 12 months as one of the best performing retail stocks.

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