The footwear company late Thursday reported net income of $2.51 per share for Q4, up from $1.18 per share during the year-ago period. Net sales increased to $736 million compared with $561.2 a year earlier. Analysts polled by Capital IQ expected $1.29 per share on $639.8 million in sales.
Wedbush noted that net sales rose 32% in constant currency terms, well above the company's guidance of about 15% growth.
Deckers is projecting 2023 net income between $17.40 to $18.25 per share and sees revenue growing 10% to 11% over prior-year levels, suggesting a range of $3.45 billion to $3.50 billion based on $3.15 billion in FY22 sales. The Street is at $18.11 per share and $3.44 billion, respectively.
Wedbush said the upbeat EPS guidance is driven by sales growth, flattish margins and a higher tax rate.
Deckers' Hoka brand "momentum remains strong with positive new developments," while demand for its UGG brand is also strong, although wholesale "pack away" could impact FY23 sales, Wedbush said.
The analysts said that supply chain issues would likely weigh on margins in the near-term but the situation was expected to reverse in H2.
Wedbush has a neutral rating on Deckers and cut the price target to $292 from $313, citing more conservative valuations in the broader market.
Price: 262.48, Change: +35.69, Percent Change: +15.73
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