Deckers Outdoor scraps annual forecast on tariff worries, shares fall

May 22 (Reuters) - UGG boots maker Deckers Outdoor DECK.N said on Thursday it will not provide annual targets due to tariff-led macroeconomic uncertainty and forecast first-quarter net sales below estimates, sending its shares down 16% after the bell.

President Donald Trump's trade policy has rattled global markets and has forced several apparel makers to pull or lower their targets for the year as profitability takes a hit from tariffs on key manufacturing partners.

The U.S. is Deckers' largest market by revenue and the company sources about 20% of its products from China.

Deckers would look at some price hikes in the U.S. and negotiate sharing incremental costs due to tariffs with factories to soften the hit from the trade policy, executives said on a post-earnings call.

Current quarter gross margin was expected to be down about 250 basis points compared with last year due to higher freight costs and more promotions, the company said.

The company expects first-quarter net sales in the range of $890 million to $910 million, compared with estimates of $925.9 million, according to data compiled by LSEG.

Deckers' fourth-quarter net sales rose 6.5% to $1.02 billion, and edged past the Wall Street estimate, as Hoka running shoes and UGG boots continue to see resilient demand in the U.S.

Still, the global trade environment had led to greater near-term uncertainty, chief executive officer Stefano Caroti said in a statement.

The company's shares have fallen about 37% so far this year.

Deckers' board also approved a $2.25 billion increase to its stock buyback program. The company had a market capitalization of $19.14 billion, according to LSEG data.