Analysts cut Deckers Outdoor rating following earnings release

Investing.com -- Deckers Outdoor Corporation was hit with various analyst downgrades on Friday in reaction to its fiscal fourth-quarter earnings release, as concerns mounted over slowing growth at its key HOKA brand and macroeconomic headwinds.

Telsey Advisory Group downgraded the stock to Market Perform from Outperform and slashed its price target in half from $240 to $120.

Despite what Telsey called a “strong fourth quarter” with solid revenue growth and gross margin expansion, the firm cited “the deceleration of the HOKA and DTC businesses, margin pressures from channel mix shifts towards wholesale,” and tariff-related cost headwinds. 

KeyBanc downgraded Deckers to Sector Weight, pointing to “HOKA’s slowing trajectory, shift toward wholesale door growth, and potential demand erosion from price increases.” 

The firm added that while Deckers has executed well, “HOKA no longer feels as competitively positioned vs. other disruptive running brands that continue to outperform.”

Evercore ISI joined the chorus with a downgrade to In-Line, warning that “the high growth story is behind us.” 

The firm believes Deckers is entering “a new phase of lower growth” as UGG and HOKA show signs of deceleration. 

It cited external headwinds like tariffs and softer consumer sentiment and said current valuations “properly reflect the emerging risk.”

Analysts across the board pointed to HOKA’s slower customer acquisition in the U.S., increased promotions, and limited near-term catalysts as key concerns.