(Reuters) -Deckers Outdoor topped Wall Street estimates for first-quarter results on Thursday, fueled by robust demand in international markets such as Europe for its Hoka and UGG brands, sending shares of the footwear maker 15% higher after the bell.
Deckers has been rapidly expanding its footprint in markets such as Europe and China, in an effort to counter soft demand in the United States.
That helped it log a 49.7% surge in international net sales in the quarter, more than offsetting a 2.8% dip in domestic sales.
Overall wholesale revenues jumped 26.7% from last year, countering soft direct-to-consumer sales, which rose only 0.5% to during the quarter.
Shoemakers such as Deckers, Nike and Skechers are staring at higher input costs owing to higher tariffs on key manufacturing hubs in Southeast Asia, primarily Vietnam.
Deckers had scrapped its annual forecast in May in response to tariff-related macroeconomic uncertainties. Its stock has lost 48% of its value this year.
“Though uncertainty remains elevated in the global trade environment, our confidence in our brands has not changed,” Deckers’ CEO Stefano Caroti said.
The company expects second-quarter net sales in the range of $1.38 billion to $1.42 billion, the mid-point of which is in line with analysts’ average estimate of $1.40 billion, according to data compiled by LSEG.
Earnings per share is expected to be in the range of $1.50 to $1.55 in the second quarter, while analysts were expecting a profit of $1.55 per share.
Net sales rose 16.9% to $964.5 million for the quarter ended June 30, beating analysts’ average estimate of $901.1 million. It logged earnings per share of 93 cents, surpassing estimates of 68 cents.
(Reporting by Savyata Mishra in Bengaluru; Editing by Alan Barona)
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