Deckers Outdoor: Hold Rating Amid Strong UGG Sales and HOKA Challenges

Bank of America Securities analyst Christopher Nardone reiterated a Hold rating on Deckers Outdoor (DECK – Research Report) today and set a price target of $128.00.

Christopher Nardone has given his Hold rating due to a combination of factors impacting Deckers Outdoor. While the company reported better-than-expected earnings per share for the fourth quarter, primarily driven by strong UGG sales and improved margins, this was offset by weaker performance in the HOKA brand. The outlook for HOKA remains uncertain, with significant competition in the running market and a slowdown in recent sales, raising concerns about its ability to regain growth momentum.
Additionally, the company faces challenges from tariff-related costs, which are expected to impact margins more significantly in the coming quarters. Although management plans to mitigate some of these costs through pricing strategies and vendor negotiations, the overall impact on profitability remains a concern. Despite positive signs for UGG, such as improved inventory levels and strong order books, there is a risk that pricing actions could dampen demand. These mixed factors contribute to the Hold rating, as the potential for growth is tempered by uncertainties and external pressures.

In another report released today, Telsey Advisory also downgraded the stock to a Hold with a $120.00 price target.

Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DECK in relation to earlier this year.