Deckers falls after missing sales estimates; Piper cuts to underweight rating
DECK•Deckers Outdoor reported quarterly sales of $1.48 billion, below analysts’ $1.51 billion estimate, while profit rose 27%. Piper Sandler cut its rating to underweight from neutral and lowered its price target to $75 from $100.
1. Sales miss estimates
Deckers Outdoor shares fell 9.71% to $77 in premarket trading after the company reported quarterly sales of $1.48 billion, below analysts’ expectations of $1.51 billion. Profit rose 27% in the quarter ended September 30. The company said aggressive competitor discounting weighed on sales.
2. Piper cuts rating
Piper Sandler downgraded Deckers to underweight from neutral and lowered its price target to $75 from $100. The brokerage expects challenging conditions to persist until next summer or fall, and cited weaker-than-expected demand for some HOKA products and elevated Clifton 10 inventories as potential pressure on the stock’s valuation. LSEG-compiled data showed 13 of 28 brokerages rated the stock buy or higher, 11 hold and four sell, with a median price target of $105.
