Deckers Outdoor Faces Pressure on Sales Guidance and Brand Diversity

2 days ago

Lisa Mateo

"This is Decker's Outdoor. It's DEK down as much as 12%. Really taking a hit to who this company is, they're the owner of Hoka running shoes, the UGG boots that are all over my house. But it was a miss on sales guidance. So, remember we were just talking about Proctor and Gamble, right? People spent on their goods, but they kind of held back on the footwear, the pricey footwear. Maybe, you know what, I'll hold on to those UGG boots another year, you know, and I won't buy another one this year. Bloomberg Intelligence is saying their forecast could be kind of conservative if the momentum continues. They said Hoka has some room to grow into a multi-billion dollar brand. But for UGG, they said for long-term success, they need more product diversity. They need a better seasonal mix. They kind of need to shake things up. And you saw it when they came out with the UGG sneakers. Everybody went crazy."

Deckers Outdoor (DEK) is under pressure with shares down 12% following a miss on sales guidance. The commentary contrasts consumer spending trends on essentials versus discretionary footwear, noting concerns over product diversity and the need for a refreshed seasonal mix in brands like UGG. Bloomberg Intelligence suggests cautious potential for growth if momentum builds in certain segments.

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