NVIDIA launches Jetson Thor robotics computers for physical AI systems
On Friday, Williams Trading adjusted its outlook on Deckers Outdoor (NYSE:DECK) shares, reducing the price target from $140.00 to $129.00, while maintaining a Buy rating on the company. The adjustment follows Deckers’ fourth-quarter earnings report, which presented a mixed performance with HOKA brand sales coming in weaker than expected and UGG brand sales exceeding forecasts. According to InvestingPro data, the stock has experienced significant pressure, declining over 21% in the past week, though the company maintains strong fundamentals with a perfect Piotroski Score of 9.
Sam Poser of Williams Trading cited the fourth-quarter results and the company’s decision not to provide fiscal year 2026 guidance as reasons for the revised price target. The lack of guidance from Deckers was attributed to concerns over the potential impact of tariffs on consumer demand. Additionally, the company’s first-quarter guidance for fiscal year 2026 did not meet analysts’ expectations, with projections for HOKA sales, gross margin, and earnings per share (EPS) falling below the consensus. InvestingPro analysis reveals that 14 analysts have recently revised their earnings estimates downward, though the company maintains robust financial health with a current ratio of 3.72 and more cash than debt on its balance sheet.
Despite the lower-than-anticipated HOKA sales in the fourth quarter and the cautious outlook, Poser highlighted that checks with HOKA’s retail partners indicated strong sell-through rates. Furthermore, Poser noted that HOKA is actively expanding its product range and distribution, employing a disciplined product segmentation strategy to manage its wholesale distribution channels effectively.
The report reflects a broader sentiment of caution in the market, as Deckers, like many other companies, navigates the uncertainties of tariffs and their potential effects on consumer spending. This cautious approach is evident in the company’s reluctance to provide full-year guidance and the conservative expectations for the upcoming quarter.
In other recent news, Deckers Outdoor Corporation reported its fourth-quarter fiscal year 2025 performance, surpassing expectations in both revenue and earnings. However, the company’s guidance for the first quarter fell short of consensus forecasts, leading several analysts to adjust their price targets. TD Cowen reduced its target from $175 to $157, while Needham cut its estimate from $150 to $120, both maintaining a Buy rating. Stifel kept a Hold rating with a $127 target, noting a significant increase in UGG brand revenue but a shortfall in HOKA brand revenue. UBS, on the other hand, raised its price target to $169, citing potential earnings per share growth driven by the HOKA brand. Piper Sandler reiterated a Neutral rating with a $100 target, highlighting a slowdown in the direct-to-consumer channel. Despite these mixed assessments, Deckers announced a substantial $2.25 billion share repurchase program, signaling confidence in its stock value. The company’s strategic focus includes expanding its wholesale and international channels, with an emphasis on partnerships and global presence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.