Shares of Deckers Brands fell 15% on Friday after the company cut its sales outlook for its key growth drivers — Hoka and Ugg — citing weaker demand due to tariff-related price increases.
The company now expects Hoka’s sales to rise by a low-teens percentage in fiscal 2026, down from 24% growth a year earlier, while Ugg is projected to grow in the low- to mid-single digits, versus 13% last year.
In May, Deckers forecast stronger growth but warned that its projections were made before new U.S. tariffs were introduced under President Donald Trump. The company now says the impact of tariffs and higher prices on consumers has become clearer.
Chief Financial Officer Steven Fasching said U.S. consumers are beginning to feel price pressures, which are affecting their discretionary spending. He added that while the new guidance marks only a “slight reduction,” the company is observing softening demand.
Despite the slowdown, CEO Dave Powers said both brands remain strong and continue to gain market share, emphasizing confidence in Deckers’ long-term strategy.For fiscal 2026, Deckers expects revenue of about $5.35 billion, below Wall Street’s $5.45 billion estimate, and earnings per share between $6.30 and $6.39. Tariff costs could reach $150 million, with half expected to be offset through price and cost-sharing adjustments.