On May 23, analysts at KeyBanc Capital Markets adjusted their stance on Deckers Outdoor Corporation (NYSE:DECK)'s stock, downgrading it from "Overweight" to "Sector Weight."
This downgrade came after the company released its Q4 2025 earnings, which were better than expected but highlighted numerous issues.
A customer browsing a retail store, finding the perfect footwear for their casual outfits.
Ashley Owens, the firm's analyst, mentioned that HOKA brand's sales performance came lower than expected and that its growth momentum continues to decelerate as it enters the new quarter. As per the analyst, this slowdown was a result of several factors, such as less effective customer acquisition and broad-based economic pressures.
Despite Deckers Outdoor Corporation (NYSE:DECK)'s successful performance, there are worries related to the HOKA brand's competitive position. It seems to be losing its position to other innovative running brands that are witnessing healthier performance. This transition in market dynamics resulted in worries related to HOKA's ability to maintain its market share.
Also, Deckers Outdoor Corporation (NYSE:DECK)'s emphasis on wholesale door growth and the expected unfavourable impacts of price increases on demand were the factors resulting in the downgrade. Such strategies might harm the short-term prospects. Considering HOKA's brand awareness, which is at a high level in the US, KeyBanc expects limited upside for Deckers Outdoor Corporation (NYSE:DECK) over the near term.
Deckers Outdoor Corporation (NYSE:DECK) is engaged in designing, marketing, and distributing footwear, apparel, and accessories for casual lifestyle use and high-performance activities.
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