Shares of Deckers Outdoor (DECK) plummeted 14.59% in Friday's pre-market trading session following the company's release of its fiscal second-quarter results and annual outlook. Despite reporting better-than-expected Q2 earnings, investors focused on the disappointing full-year sales forecast and growing concerns about the impact of tariffs on consumer spending.

Deckers, known for its HOKA and UGG brands, reported Q2 revenue of $1.43 billion, up 9.1% year-over-year. However, the company's fiscal 2026 sales forecast of approximately $5.35 billion fell short of Wall Street's expectations of $5.45 billion. This lower-than-anticipated guidance suggests that Deckers is facing challenges in the current economic environment.

During the earnings call, Deckers' executives warned of a more cautious consumer outlook due to the impact of tariffs and price increases in the U.S. market. CFO Steven Fasching stated, "We're taking into account a consumer who's a little bit more cautious," noting that U.S. consumers are starting to pull back on discretionary purchases. The company expects the unmitigated tariff impact for fiscal 2026 to be about $150 million, adding pressure to its business. With these headwinds, Deckers anticipates more pressure during its fiscal third quarter, which includes the key holiday-shopping season, further contributing to the stock's pre-market decline.