-
Tariff Worries Hit Deckers Hard as Shares Slide 14%
Deckers Brands, the company behind HOKA, UGG, and Teva, faced a sharp 14% decline in after-hours trading on Thursday after announcing it would not issue full-year guidance for fiscal 2026. The decision, driven by uncertainty over global trade dynamics and potential U.S. tariffs, raised red flags for investors despite the company’s strong year-end performance.
Citing ‘macroeconomic uncertainty’ related to evolving international trade policies, Deckers instead released more limited guidance for the first quarter of its 2026 fiscal year. The company expects Q1 revenue to fall between $890 million and $910 million, a figure that trails the upper end of analyst forecasts, which reached as high as $973 million, according to Yahoo Finance.
While the outlook may have disappointed Wall Street, the company closed out fiscal 2025 on a strong note. Fourth-quarter revenue grew 6.5% year-over-year, reaching $1.02 billion, and net income rose to $151.41 million, up from $127.55 million in the prior year.
Much of that growth was driven by Hoka, which continued to lead the company’s brand portfolio with $586.1 million in Q4 sales. Ugg also delivered steady gains, increasing sales by 3.6% to $374.3 million. However, Deckers’ Other’ brands, including Teva, Ahnu, and Koolaburra, reported a decline of 6.3%, pulling in $61.3 million for the quarter.
Across the full fiscal year, Deckers posted impressive results with total sales up 16.3% to $4.99 billion and net income totaling $966.09 million.
The company’s hesitation to provide full-year projections comes as the footwear industry braces for possible disruption from new U.S. tariffs, expected to roll out this summer. Nike has already responded by announcing price hikes, and analysts suggest brands like adidas and Puma may soon follow suit.
Concluding
With trade uncertainty looming, many retailers are treading carefully, and Deckers’ cautious approach has clearly struck a chord with the market.
Stay tuned to the Drop Date news page for more updates.
Why did Deckers’ stock drop recently?
Deckers’ shares fell about 14% after the company chose not to provide full-year guidance for fiscal 2026. The decision was due to uncertainty around potential U.S. tariffs and shifting global trade policies, which made investors uneasy despite strong financial results for fiscal 2025.
How are tariffs expected to affect Deckers and the footwear industry?
New U.S. tariffs, expected to take effect this summer 2025, could raise costs for footwear companies like Deckers.
