What happened

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.

So what

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.

Deckers Brands building

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."

Now what

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.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Deckers Outdoor. The Motley Fool has a disclosure policy.