Deckers Outdoor shares jump as Hoka demand drives forecast lift

By Juveria Tabassum

Jan 30 (Reuters) - Deckers Outdoor DECK.N shares climbed as much as 16% in morning trade on Friday after the UGG boots maker lifted its annual forecasts and signaled a softer-than-expected tariff hit, benefiting from strong full-price sales in the U.S. and international markets.

The company, which reinstated its annual forecasts in October after pausing it in May, is weathering a choppy demand environment better than many larger rivals as affluent customers splurge on its brands including Hoka running shoes.

Industry giant Nike NKE.N is in a months-long turnaround, while Puma PUMG.DE is battling margins pressure due to more promotions. On the other hand, Adidas ADSGn.DE signaled momentum after a difficult reset period.

"The fact that both Adidas and Deckers reported solid sales growth amid an uncertain consumer environment is likely to be good news for (competitor) Asics and the overall sportswear industry," said J.P. Morgan analysts in a note.

Deckers lowered its expectation for net tariff impact to fiscal 2026 earnings to about $25 million from about $55 million to $75 million earlier, as consumers were willing to absorb the price hikes taken to offset the duties.

The company also topped third-quarter sales estimates on Thursday.

"While third-quarter results (from Deckers) were encouraging, we expect investors to look for sustained momentum across channels and brands against an uncertain macro backdrop," said Telsey Advisory Group analyst Dana Telsey.

Deckers' 12-month forward price-to-earnings ratio, a key metric for valuing stocks, is 14.57, compared with an industry median of 13.76, and 30.74, -13.29 and 13.50 for Nike, Puma and Adidas, respectively.