Deckers Outdoor Faces Pressures Amid Economic Uncertainty and Tariffs
Deckers Outdoor saw its shares drop 11% due to reduced annual sales forecasts impacted by economic challenges and tariffs. U.S. consumer demand is affected, and CEO Stefano Caroti anticipates cautious spending. Despite tariff-related pressures, the company posted better-than-expected earnings for the latest quarter.
Shares of Deckers Outdoor plummeted 11% before market opening on Friday after the company issued a downbeat annual sales forecast. Economic uncertainty and tariff costs have affected the demand for Deckers' footwear, which includes Hoka sneakers and UGG boots, in the U.S. market.
President Donald Trump's tariffs have constrained discretionary spending among U.S. consumers coping with inflation. The company's stock has taken a hit, dipping nearly 50% this year. In comparison, Nike reported a surprise increase in first-quarter revenue but also warned of tariff pressures ahead.
Deckers expects its annual sales to reach approximately $5.35 billion, falling short of analysts' estimates. CEO Stefano Caroti cited tariff impacts and price hikes leading to cautious consumer behavior in the U.S. The company's second-quarter sales outperformed projections, and its stock trades at 15.37 times the forecasted earnings for the next year.
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