Cautious Hold Rating for Deckers Outdoor Amid Competitive Pressures and Mixed Brand Performance

Bank of America Securities analyst Christopher Nardone reiterated a Hold rating on Deckers Outdoor today and set a price target of $103.00.

Christopher Nardone’s rating is based on several factors impacting Deckers Outdoor’s current market position and future prospects. The HOKA brand, while expected to achieve its sales guidance for the second half of the fiscal year, faces intense competition that could hinder its market share growth in the coming year. This is compounded by the need for successful innovation and product refreshes to maintain momentum, with a notable focus on the Clifton 11 launch in Fall 2026.
UGG’s performance is also a critical factor, with its sales showing a mixed outlook. While wholesale sales have increased, direct-to-consumer sales have declined, and the brand’s success heavily relies on a strong holiday season performance. Additionally, tariff impacts are expected to pressure margins, and while some relief is anticipated, overall operating margins are forecasted to decline. These elements contribute to a cautious outlook, justifying the Hold rating with a price objective of $103, reflecting a balance between slowing sales trends and a strong margin profile.