Deckers Outdoor Faces Footwear Forecast Flop

Deckers Outdoor saw a 14.5% drop in shares following a disappointing annual sales forecast. Tariff impacts and competition have pressured the footwear maker, particularly affecting UGG and Hoka product lines. The company has increased prices in response to U.S. tariffs on Vietnamese imports.

Shares of Deckers Outdoor fell by 14.5% on Friday, as the company released an underwhelming annual sales forecast. The footwear manufacturer is grappling with economic uncertainties and increased tariff costs, which have softened demand for its products in the U.S. market.

Deckers, known for its Hoka sneakers and UGG boots, is contending with the effects of President Trump's tariffs, impacting the spending capacity of inflation-struck, budget-minded American consumers. Analyst Joseph Civello from Truist expressed concerns about UGG's future prospects, citing potential peak growth for its footwear and stiffening competition amid constrained consumer budgets.

In response to U.S. tariffs, Deckers has selectively raised prices for its goods, which are primarily sourced from Vietnam. While this strategy provided some relief, analysts caution that tariff pressures could persist into FY27. Deckers forecasts its annual sales will reach roughly $5.35 billion, lower than the anticipated $5.45 billion.

(With inputs from agencies.)