Deckers Outdoor (DECK) shares tumbled 7.51% in after-hours trading on Thursday, despite the company reporting better-than-expected first-quarter earnings, as its full-year guidance fell short of market expectations.

The footwear maker posted quarterly earnings of 94 cents per share, beating the consensus estimate of 87 cents. Revenue rose 5.7% to $1.02 billion, meeting analyst projections. However, the company's outlook dampened investor enthusiasm: Deckers raised its fiscal 2027 EPS guidance to a range of $7.35 to $7.50, up from a prior forecast of $7.30 to $7.45, but the midpoint of $7.425 came in below the FactSet consensus of $7.49. Moreover, the company maintained its annual sales forecast at $5.86 billion to $5.91 billion, which failed to excite the market.

The after-hours sell-off reflects disappointment that the modestly raised profit guidance was not enough to surpass Wall Street expectations, with the maintained revenue view and below-consensus EPS midpoint triggering a sharp decline.