Deckers Brands' Stock Dips 16% After Lower-Than-Expected 2026 Outlook

Published 2 hours agoDECK

Deckers Brands' Stock Dips 16% After Lower-Than-Expected 2026 Outlook

Deckers Brands' stock has seen a notable decline, with shares dropping approximately 16% in extended trading. The drop follows the unveiling of the company's fiscal year 2026 outlook, which did not meet investor expectations due to its modest projections. Fashion United reported that the conservative sales forecast, which disappointed analysts, was a key factor in the share price drop.

In its forecast, Deckers estimated a 15% increase in net sales for fiscal year 2025, raising its annual sales target to $4.9 billion, a step up from the previously anticipated 12% growth. Notably, sales for Deckers' HOKA brand increased by 23.7% year-over-year to $530.9 million in the third quarter of fiscal year 2025, although there are concerns that HOKA's rapid growth may not be sustainable. Meanwhile, UGG's net sales grew 16.1% to $1.244 billion during the same period.

Analysts, including those at Seaport Global Securities, expressed caution, downgrading Deckers from "Buy" to "Neutral." They cited potential challenges in maintaining growth momentum for both the HOKA and UGG brands. Stifel also noted that the expectations for fiscal year 2026 might be overly optimistic. As Deckers faces challenging market conditions, including potential tariffs and a competitive retail landscape, its performance will be closely watched by investors.

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