Deckers, the parent company of popular labels like HOKA, UGG, and Teva, saw its shares drop by approximately 14% in after-hours trading Thursday after opting not to provide full-year guidance for fiscal 2026. The company attributed the decision to 'macroeconomic uncertainty,' largely tied to shifting global trade policies and looming U.S. tariffs.
While Deckers posted a solid performance in the final quarter of fiscal 2025, the company's cautious outlook spooked investors. Instead of offering a full-year forecast, the company issued first-quarter guidance, projecting net sales between $890 million and $910 million. That range fell short of Wall Street's expectations, which anticipated Q1 sales as high as $973 million, according to data from Yahoo Finance.
Despite the subdued forecast, Deckers closed fiscal 2025 on a high note. Net sales for the fourth quarter rose 6.5% year-over-year to $1.02 billion, while quarterly net income climbed to $151.41 million from $127.55 million the year prior. HOKA continued to be the company's star performer, delivering $586.1 million in Q4 revenue.
UGG also turned in a solid performance, with sales up 3.6% to $374.3 million. On the flip side, the company's 'Other' brands segment, which includes Teva, Koolaburra, and Ahnu, saw sales decline by 6.3% to $61.3 million.
Decker's decision to hold off on full-year guidance comes as the broader footwear industry braces for potential disruptions from new U.S. tariffs, set to take effect this summer. The uncertainty has already prompted Nike to announce price hikes, a move that industry analysts expect competitors like adidas and Puma may soon follow.
Final Thoughts
As trade tensions mount, brands across the sector appear to be preparing for a volatile retail landscape, and investors are taking notice.
Stay tuned to Sneakerjagers' news page section for updates.
Deckers' shares dropped about 14% because the company chose not to provide full-year guidance for fiscal 2026, citing uncertainty around global trade policies and potential U.S. tariffs.
The threat of new U.S. tariffs is creating uncertainty for footwear brands, leading to concerns about higher costs and potential price increases. Companies like Deckers are holding back on long-term forecasts, and brands such as Nike have already announced upcoming price hikes in response.
