Continue Reading Below
Shares of Deckers Outdoor Corp.(NYSE: DECK) were up 16.7% as of 10:44 a.m. EDT after the footwear designer and distributor announced a surprise profit and better-than-expected revenue for its fiscal fourth quarter of 2017.
Quarterly revenue declined 2.4% year over year (or down 1.5% at constant currency) to $369.5 million, which translated to roughly flat adjusted earnings of $0.11 per share. Analysts, on average, were expecting an adjusted net loss of $0.06 per share on lower revenue of $357.6 million.
Image source: Deckers Outdoor.
Deckers also provided an update on its cost-savings plan, telling investors that $150 million in cumulative savings coming from cost of sales improvements and reductions in sales, general, and administrative expenses should drive an operating profit improvement of $100 million by the end of fiscal 2020.
"I am proud of the work the team has accomplished, and I believe we have laid a solid foundation to execute on our savings plan," added Deckers CEO Dave Powers. "I am confident that these improvements will drive a significant increase in shareholder value over the long-term."
Finally, for the full fiscal year of 2018, Decker's expects revenue to be in the range of down 2% to flat over fiscal 2017, which should translate to adjusted earnings per diluted share of $3.95 to $4.15. By contrast, Wall Street was looking for lower fiscal 2018 adjusted earnings of $3.79 per share on a slight 0.2% decline in revenue.
This was a solid quarter from Deckers, despite its modest growth operating in a difficult market. As the company continues to drive improvements in profitability, it's no surprise to see Deckers stock up big today.
10 stocks we like better than Deckers OutdoorWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Deckers Outdoor wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 1, 2017