Deckers Outdoor on Thursday raised its annual net sales forecast for a second time, after beating third-quarter sales estimates, as it benefited from strong demand for its Hoka running shoes in the US during the holiday season.

Still, shares of the footwear maker fell 10.3 percent in extended trading. They had jumped 82 percent in 2024.

Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category.

That, coupled with the success of the company’s UGG boots and sandals, has helped it post double-digit revenue growth for nearly seven quarters.

Hoka shoes — which can retail for up to $300 in the US, according to the company’s website — have also enjoyed full-price sales, aiding Deckers’ margins.

The company now expects annual net sales to increase about 15 percent to $4.9 billion, compared with its prior expectation of about 12 percent growth to $4.8 billion.

Analysts estimated an increase of 14.9 percent to $4.93 billion, according to data compiled by LSEG.

The company reported third-quarter revenue of $1.83 billion, compared with the estimates of $1.73 billion.

By Juveria Tabassum; Editing by Shilpi Majumdar

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