Why Deckers Outdoor Stock Dropped 7% Today
Shares of Deckers Outdoor (NYSE: DECK) slid 7.3% through 2:50 p.m. ET Wednesday after Truist Securities analyst Joseph Civello downgraded the shoemaker from buy to hold, and cut his price target by 12% to $864 a share.
Deckers is probably best known for selling the Ugg and Teva brands, but it was actually the fast-growing Hoka sportswear brand that earned the analyst's ire, on worries it might grow only 25% this year.
I know, right? For any other footwear brand, 25% growth would be pretty impressive. For that matter, even at Deckers, Teva sales grew only 15% year over year in 2023, and Ugg sales were down 8%. The thing is, Civello had been modeling 40% year-over-year growth for Hoka this year, but according to StreetInsider.com, the analyst now thinks that -- based on February and March sales trends -- Hoka sales will only grow 25% this year.
Source Fool.com
