By Mackenzie Tatananni

Deckers Outdoor fell sharply in premarket trading Friday after issuing an outlook for its current fiscal first quarter that missed analysts' expectations, with the maker of Hoka sneakers and Ugg citing global trade tensions.

Deckers guided for sales in the range of $890 million to $910 million for the current quarter, missing the $925.3 million analysts were expecting at the midpoint, according to FactSet. The company also forecast earnings of 62 cents to 67 cents a share, below estimates of 79 cents. The company also declined to provide a fiscal 2026 outlook, citing macroeconomic uncertainty.

Chief Financial Officer Steven Fasching said on a call with analysts that the company expected to "absorb a portion of the tariff impact." On a broader scale, Fasching said there was "potential to see demand erosion associated with the combination of price increases and general softness in the consumer spending environment."

Analysts at KeyBanc Capital Markets downgraded shares of Deckers Outdoor to Sector Weight from Overweight on the heels of the company's latest earnings report. The analysts identified slowing growth within the Hoka brand, citing a "clear deceleration within the brand as headwinds like slower customer acquisition and macro pressure materialize." In their view, Hoka "no longer feels as competitively positioned vs. other disruptive running brands that continue to outperform, raising concerns it may be losing mindshare."

Analysts with Seaport Research Partners reiterated a Neutral rating on the shares. The Seaport team noted that the company reported a "substantial" sales and earnings beat in fiscal 2025, with sales upside driven by 4% revenue growth in the Ugg brand, "much better than implied guidance of a 15% decline." While Hoka revenue was up 10%, "that wasn't any better than planned," the analysts continued. They noted that Deckers "bought back a lot of stock" in the fiscal fourth quarter, a pattern that had continued into the current period.

Shares of Deckers Outdoor declined 18% to $103.67 on Friday. Futures tracking the benchmark S&P 500 were flat. Competing footwear retailers Skechers and Nike were down 0.6% and 0.2%, respectively.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 23, 2025 06:08 ET (10:08 GMT)

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