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Deckers (NYSE: BRIDGE) rallied Thursday, snapping a two-day losing streak after the company reported solid results for its fiscal third quarter that included record revenue for the quarter and forecasts for 2024 that beat Street expectations.
The company also announced it that CEO Dave Powers will leave the company at the end of this summer. He will be replaced by Stefano Caroti, currently COO of Deckers.
For the fiscal third quarter, Deckers earned a profit of $15.11 per share on revenue of $1.56 billion. This is up from last year’s $10.48 billion and $1.35 billion, respectively, beating estimates of $3.45 million and $110 million.
Net sales increased 16% as direct-to-consumer sales increased 22.7% and wholesale sales increased 8.6% in the third quarter. Domestic sales increased 15.6% and international sales increased 16.7%.
The company’s gross margin increased from 53.0% to 58.7%.
For 2024, Deckers expects a profit of $26.25-$26.50 per share on net sales of ~$4.15 billion versus the Street forecast of $24.25 per share on $4.11 billion sales.
Gross margin for 2024 is forecast at 54.5% with operating margin at 20%.
Shares were up 5% after Thursday’s close.