Deckers Cuts Full-Year Sales Outlook on Weak Hoka, Ugg Demand; Shares Fall 8%

Deckers Outdoor (DECK) shares fell 8% in premarket trading after the footwear company missed quarterly sales estimates and lowered its full-year revenue guidance, citing soft demand for its Ugg and Hoka brands. The Goleta, Calif.-based company now expects full-year sales of $5.70 billion to $5.73 billion, down from prior guidance of $5.86 billion to $5.91 billion and below the $5.88 billion analysts surveyed by Visible Alpha projected. Hoka sales are now seen growing at a high-single-digit percentage, versus a prior low-double-digit forecast, while Ugg sales are expected to rise by a low-single-digit percentage, down from mid-single digits. CEO Stefano Caroti pointed to a "challenging consumer environment." Deckers did raise its full-year EPS forecast to $7.80 to $7.95 from $7.35 to $7.50, helped by roughly $0.52 from tariff refunds. For the second quarter ended in September, EPS of $2.31 beat estimates, though sales of $1.48 billion missed. Deckers shares entered Friday down about 18% year to date.