DECK Earnings: Deckers Outdoor Stock Crashes 22% on Dismal Guidance

The stock of Deckers Outdoor (DECK) is down 22% after the shoemaker reported weak forward guidance and raised concerns about tariffs.

The company behind Hoka running shoes and Ugg boots announced earnings per share of $1, which was ahead of the $0.61 expected on Wall Street. Revenue in what was the year’s first quarter totaled $1.02 billion, which narrowly topped the $997.8 million consensus expectation of analysts.

Despite beating on the top and bottom lines with its results, Deckers Outdoor offered an outlook that fell short of Wall Street forecasts, sending its share price lower. Citing global trade tensions, Deckers’ management team said they anticipate sales of $890 million to $910 million for the current quarter. That’s below the $925.3 million that analysts had penciled in for the company.

Deckers Outdoor’s revenue by segment. Source: Main Street Data

Full-Year Guidance Pulled

Deckers also forecast earnings per share this quarter of $0.62 to $0.67, far below estimates that called for a profit of $0.79 per share. Additionally, the company declined to provide an outlook for the entire year, saying there is too much macroeconomic uncertainty.

Several analysts, including at KeyBanc Capital Markets (KEY) and Seaport Research Partners, downgraded DECK stock and lowered their price targets immediately after the print. The shoemaker continues to buyback a lot of its own stock, announcing a new $2.25 billion share repurchase authorization along with its latest financial results.

DECK stock has fallen 38% this year and is one of the worst performers in the benchmark S&P 500 index.

Is DECK Stock a Buy?

The stock of Deckers Outdoor has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on eight Buy and eight Hold recommendations issued in the last three months. The average DECK price target of $138.57 implies 9.90% upside from current levels. These ratings are likely to change after the company’s financial results.

Read more analyst ratings on DECK stock