Deckers Outdoor Shares Plummet: Tariffs and Economic Concerns Pressure U.S. Sales

Deckers Outdoor faces a steep drop in shares due to disappointing annual sales forecasts, driven by economic uncertainty and tariff costs impacting U.S. demand for its footwear. The maker of Hoka sneakers and UGG boots has been hit by President Trump's tariffs. Analysts highlight increasing competition and consumer caution.

Shares of Deckers Outdoor dropped nearly 12% in premarket trading on Friday, following a gloomy annual sales forecast. The footwear company, known for Hoka sneakers and UGG boots, is grappling with U.S. economic uncertainty and tariff costs that have softened demand for its products.

The influence of President Donald Trump's tariffs is severely impacting U.S. consumer spending, affecting the brand and its peers alike. According to Truist analyst Joseph Civello, the disappointing results and growth outlook, particularly concerning UGG, suggest intensified competition and constrained consumer budgets.

Despite selective price hikes to counteract tariffs on Vietnamese imports, challenges persist. Deckers anticipates annual sales of $5.35 billion, below the $5.45 billion estimates. As tariffs continue to pressure the market, the company foresees cautious consumer behavior affecting sales in the latter part of the year.

(With inputs from agencies.)