Deckers Brands is the IBD Stock Of The Day for Thursday as shares of the Hoka maker test a buy point. Footwear stocks swung generally higher as Under Armor rallied 31% on earnings.
Deckers, the seller behind the popular Hoka and Ugg shoe brands, has received praise from analysts as it rides momentum into the holiday shopping season. The company on Oct. 24 reported a 39% increase for Q2 2025 earnings to $1.59 per share, beating FactSet estimates of $1.24 per share. Revenue jumped 20% to $1.31 billion, while analysts expected $1.2 billion.
Hoka brand sales soared nearly 35% to $570.9 million. UGG sales rose 13% to $690 million, while Teva brand sales ticked up 2.3%. Sanuk net sales tumbled almost 48% to $2.8 million. Deckers completed the sale of its Sanuk brand on Aug. 15 to athleticwear company Lolë for an undisclosed sum.
Deckers guided to a 12% increase in 2025 sales, to $4.8 billion. The company forecasts earnings ranging from $5.15 to $5.25 per share, up from $4.86 per share last year. The consensus view among analysts polled by FactSet calls for 2025 earnings of $5.36 per share on $4.83 billion in sales.
For Deckers' third quarter, FactSet expects earnings to slide 2% to $2.52 per share. Analysts predict a 9% increase in revenue, to $1.7 billion.
Resounding Beat, Strong Runway
KeyBanc called the report a "resounding beat on all fronts," noting upside potential based on Deckers' new product launches and "strong international runway." The firm raised its price target on DECK stock to 190 from 180 and maintained an overweight rating on the shares.
Telsey Advisory lifted its price target on Deckers stock following its results, noting the company outperformed expectations across the board. Sales growth nearly doubled market expectations, led by strong gains at Hoka and Ugg, the firm added. Deckers continues to deliver results in an uncertain macro environment, which demonstrates its strong market position, healthy brand portfolio and ability to drive long-term growth, Telsey wrote. The firm lifted its price target on DECK stock to 190 from 183 on the results and kept an outperform rating. Telsey in late December also added the Hoka maker to its top picks for the 2024 holiday season among footwear stocks, along with Birkenstock.
Deckers Stock
DECK stock surged 4.5% Thursday to trade around a 172.57 buy point for a 22-week cup-with-handle base.
Shares of the Hoka maker have rallied more than 28% from an August low and are up almost 55% in 2024.
Deckers hit a record high of 184.48 on June 3 before sliding into a consolidation.
Under Armor vaulted more than 31% after its quarterly results, propelling shoe stocks higher. Under Armor posted a 58% increase in earnings to 30 cents per share, outpacing estimates for 20 cents. Revenue fell almost 11% to $1.399 billion, but still edged out expectations for $1.386 billion. The company also lifted its earnings guidance ahead of forecasts as it makes progress on its restructuring plan.
Among other footwear stocks, On Holding popped 5% and bounced off its 50-day moving average.
On Holding reports its Q3 results on Nov. 12. FactSet expects flat earnings year over year at 22 cents per share on nearly 31% revenue growth to $705 million.
Crocs climbed 1.2% while Birkenstock rose 2.2%.
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