Deckers Outdoor Corporation (NYSE:DECK), a renowned footwear and apparel company known for its popular brands like Ugg and Hoka, operates in a competitive market against giants such as Nike and Adidas. On October 24, 2025, Telsey Advisory updated its rating for DECK to "Market Perform," maintaining its previous grade and recommending holding the stock. At that time, the stock price was $90.02, as highlighted by TheFly.
Despite the stable rating, Telsey Advisory lowered its price target for Deckers from $120 to $105. This adjustment comes amid a significant decline in DECK's stock price, which dropped 12.7% following the release of its fiscal Q2 report. Although the company exceeded expectations in earnings per share and revenue, the report led to downgrades from three major Wall Street firms. The revised price targets now range from $81 to $120, with a consensus target of $114.
The downgrades are primarily due to concerns over the slowing growth of the Hoka brand and a softer market in the U.S. Bank of America, for instance, reduced its price target from $122 to $103 while maintaining a neutral stance on the stock. Deckers' full-year revenue guidance fell short of Wall Street's expectations, despite reporting fiscal Q2 earnings of $1.82 per share, which surpassed estimates.
Deckers has adjusted its sales guidance for both Hoka and Ugg due to concerns that tariffs are negatively impacting demand. Hoka, a rising star in the running shoe market, is now projected to grow by a low-teens percentage in fiscal 2026, a decrease from the 24% growth seen in the previous year. Meanwhile, Ugg is expected to grow in the low to mid single-digit percentage range, down from a 13% growth rate in the prior year.
The company now projects full-year sales of approximately $5.35 billion, which falls short of the consensus forecast by analysts surveyed by Visible Alpha. CEO Stefano Caroti expressed concerns about a more cautious consumer base in the U.S. due to tariffs and rising prices. CFO Steven Fasching mentioned that while tariffs pose a challenge, the company is considering mitigation strategies, such as promotions, to attract shoppers.
