Deckers (NYSE:DECK) saw its stock surge more than 14% in premarket trading Friday after the footwear company reported second-quarter earnings that significantly exceeded analyst expectations and raised its full-year guidance.

The maker of UGG and HOKA brands posted adjusted earnings per share of $1.59 for the quarter ended September 30, beating the analyst consensus of $1.23 by 29%. Revenue climbed 20.1% YoY to $1.31 billion, surpassing the $1.2 billion estimate.

HOKA brand sales were particularly strong, jumping 34.7% YoY to $570.9 million, while UGG brand sales rose 13% to $689.9 million. The company's direct-to-consumer net sales increased 19.9% to $397.7 million, with comparable sales up 17%.

"HOKA and UGG produced outstanding second quarter results driven by strong consumer demand for our innovative and unique products," said Stefano Caroti, President and Chief Executive Officer.

Gross margin expanded to 55.9% from 53.4% in the same quarter last year, reflecting improved pricing and product mix.

Looking ahead, Deckers raised its full-year outlook. The company now expects fiscal 2025 revenue to increase approximately 12% to $4.8 billion, slightly below the consensus of $4.82 billion. However, it raised its EPS guidance to a range of $5.15 to $5.25, compared to the analyst estimate of $5.35.

"A strong beat across the board on a qtr w/ a tougher GM% compare and mixed alt data into the print gives the bull case more support for near-term outperformance, and evidence that UGG has transformed into a higher-growth brand," Jefferies analysts said in a post-earnings note.

"Holiday will be more important and competitive qtr, but expect mgmt's execution record to largely hold," they added.

Senad Karaahmetovic contributed to this report.

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