U.S. Stock Alert: Deckers Outdoor Plunges on October 23rd Due to Lowered Sales Guidance, Revenue Miss, and Downgraded Ratings

Deckers Outdoor October 23 Sharp Drop Interpretation

Keywords: Sales guidance downgrade, revenue misses expectations, rating downgrade

1. After the close on October 22, the company announced fiscal 2027 Q2 revenue of $1.481 billion, falling short of the market estimate of $1.507 billion. At the same time, it lowered its fiscal 2027 sales guidance to $5.7–$5.73 billion, below the previous range of $5.86–$5.91 billion. Both HOKA and UGG full-year sales guidance were also cut, raising concerns about the sustainability of growth.

2. On October 23, Piper Sandler downgraded its rating from Neutral to Underweight and lowered its price target from $100 to $75. Goldman Sachs maintained its Sell rating and reduced its price target to $75. Baird, Bernstein, Raymond James, Truist and others also lowered their price targets.

3. Analysis on October 22 conference call and October 23 indicated intensified promotions for American athletic footwear and apparel, an 8% decline in DTC sales, delayed purchases by UGG consumers with more subdued holiday restocking expectations compared to last year, some new HOKA products failed to meet expectations, and Clifton 10 inventory continues to be a drag. The company prioritizes maintaining gross margins and does not participate in promotions, but sales outlook is softening.

(Disclaimer: This content is summarized from publicly available information using AI technology, for reference only and does not constitute investment advice.)