Telsey downgrades Deckers Outdoor to Market Perform, halves price target

Telsey Advisory analyst Dana Telsey downgraded Deckers Outdoor (DECK) to Market Perform from Outperform with a price target of $120, down from $240, stating that Deckers “delivered a strong fourth quarter,” continuing its string of consecutive earnings beats, and adding that HOKA growth decelerated faster than expected, but UGG’s better than expected topline offset that slowdown. The firm cites the deceleration of the HOKA and DTC businesses, margin pressures from channel mix shifts towards wholesale, the potential for increased promotions against low levels in the prior years, and tariff costs, along with general challenges to overall global macro visibility, for its downgrade.