Deckers Outdoor Stock Falls 17% On Weak Outlook

The stock of Deckers Outdoor (DECK) is down 17% after the shoemaker reported weak forward guidance and raised concerns about tariff impacts.

The company behind Hoka running shoes and Ugg boots announced earnings per share of $1 U.S., which was ahead of the $0.61 U.S. expected on Wall Street.

Revenue in what was the year’s first quarter totaled $1.02 billion U.S., which topped the $997.8 million U.S. consensus expectation of analysts.

Despite beating on the top and bottom lines with its results, Deckers Outdoor offered an outlook that fell short of Wall Street forecasts, sending its share price lower.

Citing global trade tensions, Deckers Outdoor’s management team said they anticipate sales of $890 million U.S. to $910 million U.S. for the current quarter.

That’s below the $925.3 million U.S. that analysts had penciled in for the company.

Deckers also forecast earnings per share this quarter of $0.62 U.S. to $0.67 U.S., far below estimates that called for a profit of $0.79 U.S. per share.

Additionally, the company declined to provide an outlook for the entire year, saying there is too much macroeconomic uncertainty.

Deckers Outdoor’s Chief Financial Officer (CFO) Steven Fasching said on an earnings call that there is “potential to see demand erosion associated with the combination of price increases and general softness in the consumer spending environment.”

Several analysts, including at KeyBanc Capital Markets and Seaport Research Partners, downgraded Deckers Outdoor’s stock immediately after the print.

The shoemaker does continue to buyback a lot of its own stock, announcing a new $2.25 billion U.S. share repurchase authorization along with its latest financial results.

Prior to today (May 23), the stock of Deckers Outdoor had fallen nearly 40% this year and was one of the worst performing securities in the benchmark S&P 500 index.

Deckers shares are currently trading at $103.75 U.S. each.