Deckers Outdoor initiated with a Sell at Goldman Sachs

Goldman Sachs initiated coverage of Deckers Outdoor (DECK) with a Sell rating and $90 price target While the firm acknowledges Decker’s portfolio of strong brands, the analyst sees a less attractive risk/reward relative to other companies in apparel and accessories sector in the near-term as a result of accelerating competition, particularly in running, and emerging signs of normalizing brand momentum. Strong execution could sustain momentum for sportswear and footwear brands that have driven significant market share gains over the past few years, but the firm believes accelerating competition and shifting consumer preferences make for “a more muted near-term backdrop for the industry overall,” the analyst added.