By Katherine Hamilton

Deckers Outdoor gave a lower-than-expected outlook for the current quarter and limited its fiscal-year view, as tariffs add uncertainty and growth slows for its Hoka brand.

The footwear company, which also owns Ugg and Teva, said Thursday it wouldn't share an outlook for fiscal-year 2026, citing macroeconomic uncertainties because of global trade policies. Many shoe companies are expecting higher costs from new tariffs because they manufacture products abroad, and are also worried about consumers pulling back on discretionary spending amid macroeconomic turbulence.

Deckers said it expects sales in the current fiscal first-quarter to be $890 million to $910 million, below the $925.3 million analysts were projecting. Earnings per share are expected to be 62 cents to 67 cents, while Wall Street was looking for 79 cents.

The Goleta, Calif., company has meanwhile been logging slower growth in its sneaker brand Hoka, the popularity of which has come back to earth in recent quarters.

The brand had exploded as a sales driver for Deckers, with annual revenue jumping more than eight-fold from 2019 to 2024. Hoka sales started to slow in the third quarter, sparking concerns among investors that Deckers's strength might be waning. The company's shares dropped in January after the company posted lower-than-expected sales guidance.

Shares fell 9%, to $114.74, in post-market trading Thursday.

For the fiscal fourth quarter, Deckers posted a profit of $151.4 million, or $1.00 a share, in the quarter ended March 31, compared with $127.5 million, or 82 cents a share, a year earlier. Analysts were expecting 64 cents a share, according to FactSet.

Revenue rose 6.5%, to $1.02 billion. Analysts surveyed by FactSet forecast revenue of $1.01 billion.

In the fourth quarter, Hoka sales increased 10%, to $586.1 million, compared with the $609.4 million expected by Wall Street. Ugg sales grew 3.6%, to $374.3 million, ahead of the expected $343.5 million.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

By Katherine Hamilton

Deckers Outdoor gave a lower-than-expected outlook for the current quarter and limited its fiscal-year view, as tariffs add uncertainty and growth slows for its Hoka brand.

The footwear company, which also owns Ugg and Teva, said Thursday it wouldn't share an outlook for fiscal-year 2026, citing macroeconomic uncertainties because of global trade policies. Many shoe companies are expecting higher costs from new tariffs because they manufacture products abroad, and are also worried about consumers pulling back on discretionary spending amid macroeconomic turbulence.

Shares fell 14% to $108.40 in post-market trading.

Deckers expects sales in the current fiscal first-quarter of $890 million to $910 million, below the $925.3 million analysts were projecting. Earnings per share are expected to be 62 cents to 67 cents, while Wall Street was looking for 79 cents.

"We expect to absorb a portion of the tariff impact," Chief Financial Officer Steven Fasching said on a call Thursday. "We also believe there is potential to see demand erosion associated with the combination of price increases and general softness in the consumer spending environment."

Deckers is anticipating an added $150 million to the cost of goods in fiscal-year 2026 due to tariffs, Fasching said. The company is also preparing for an erosion in consumer sentiment, which it believes could lower demand.

Less than 5% of the Goleta, Calif., company's production comes from China, and the remainder is sourced from Southeast Asian countries, primarily Vietnam, Fasching said. Deckers is considering increasing some prices and negotiating cost sharing with factory partners to mitigate added expenses.

Deckers has meanwhile been logging slower growth in its sneaker brand Hoka, the popularity of which has come back to earth in recent quarters. Hoka sales increased 10%, to $586.1 million, in the fourth quarter, missing the $609.4 million expected by Wall Street.

The brand exploded as a sales driver for Deckers, with annual revenue jumping more than eight-fold from 2019 to 2024. Hoka sales started to slow in the third quarter, sparking concerns among investors that Deckers's strength might be waning. The company's shares dropped in January after it posted lower-than-expected sales guidance.

Overall revenue rose 6.5%, to $1.02 billion. Analysts surveyed by FactSet forecast revenue of $1.01 billion. Ugg sales grew 3.6%, to $374.3 million, ahead of the expected $343.5 million.

Decker's profit was $151.4 million, or $1.00 a share, in the quarter-ended March 31, compared with $127.5 million, or 82 cents a share, a year earlier. Analysts were expecting 64 cents a share, according to FactSet.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 22, 2025 17:32 ET (21:32 GMT)

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