"Deckers Outdoor (NYSE:DECK) shares are down 12.70% Friday after three major Wall Street firms reset price targets following the company's fiscal Q2 report, with outlooks now ranging from $81 to $120 with a consensus price target of $114. The downgrades reflect growing concern about HOKA's deceleration and softer U.S. market momentum, though strategists remain divided on the stock's near-term trajectory."
"Bank of America trimmed its target to $103 from $122 while maintaining a Neutral rating. The firm acknowledges that HOKA's low-teens growth guidance for the second half is "achievable," but flagged intensifying competition from both larger and smaller rivals as a headwind for market share gains next year. BofA's base case projects HOKA sales growth slowing to 7% in fiscal 2027 from 14% in fiscal 2026, a significant deceleration."
"The analyst calls reflect real operational headwinds. HOKA, which has been the company's growth engine, is facing margin pressure from competitive intensity. The brand's expansion into new categories and geographies, while strategically sound, is consuming marketing dollars and creating pricing pressure. UGG, the legacy franchise, remains profitable but faces seasonal volatility and mature market dynamics in North America. The company's fiscal Q2 results beat Wall Street expectations on both the top and bottom lines, but management's second-half guidance suggesting caution on near-term"
Deckers Outdoor shares dropped 12.7% after three Wall Street firms reset price targets to $81–$120, with a consensus of $114. Bank of America cut its target to $103, warning of competitive headwinds and projecting HOKA growth to slow to 7% in fiscal 2027 from 14% in 2026. Citi lowered its target to $120 while keeping a Buy, and Goldman cut to $81 while maintaining a Sell, citing weak U.S. revenue growth. HOKA faces margin pressure as expansion consumes marketing spend and creates pricing pressure. UGG remains profitable but faces seasonal volatility. Fiscal Q2 beat expectations, but guidance prompted caution.
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