Table content
## Why the Manufacturer of Hoka and Ugg Experienced a Stock Decline on Friday
**Important Points:**
* Deckers Outdoor, the firm responsible for well-known footwear labels such as Hoka and Ugg, disclosed outstanding third-quarter profits that surpassed experts’ predictions. However, the equity still plunged almost 20% on Friday.
* Several market watchers are wondering if the desire for Deckers’ footwear will stay robust.
* Deckers’ leaders are positive that their leading labels will remain in demand, and at least one expert concurs.
In spite of going beyond anticipations with its newest quarterly sales statistics, Deckers Outdoor (DECK) watched its equity value plummet on Friday.
The business, distinguished for its Hoka, Ugg, and Teva footwear, assured traders late Thursday that it wasn’t observing any deceleration in desire for its most in-demand footwear. All the same, apprehensions regarding prospective desire patterns triggered a considerable sell-off, with Deckers’ equity declining 19% in afternoon trading, making it the poorest performer in the S\&P 500.
Deckers disclosed unprecedented third-quarter sales of \$1.83 billion, a 17% rise year-over-year, exceeding the \$1.73 billion consensus estimate from experts surveyed by Visible Alpha. Profits per equity (EPS) for the quarter concluding December 31 were \$3, whereas experts had previously estimated \$2.60 per equity.
## Deckers Elevates Full-Year Sales Prediction
According to monetary records, Deckers now foresees full-year sales expansion of 15%, up from the prior prediction of 12%, attaining \$4.9 billion. Chief Monetary Officer Steven Fasching stated during Thursday’s profits call that Deckers doesn’t predict any decrease in the acceptance of Ugg or Hoka, as sales for these labels expanded by roughly 16% and 24%, respectively, in the prior quarter.
“Desire for these labels remains remarkably robust,” Fasching underscored during the call.
## UBS States Trader Apprehensions Are Groundless
UBS experts stated in a Friday-issued analysis that the downturn in Deckers Outdoor Corporation (DECK) stock presents a favorable purchasing prospect. Although shareholders could be worried about Hoka’s decelerating expansion and Ugg’s struggle to duplicate its prior robust outcomes, the analysis contends that these worries are “baseless.”
The analysis indicated that “Hoka has a robust lineup of novel offerings” and that Ugg is “among the most impactful leisure footwear labels globally” and is evolving into a “genuine year-round label” after debuting as a wintertime shoe.
UBS boosted its price objective on Deckers to $284 from $267 previously. The revised target price denotes a premium of roughly 57% to the present share price.
Even considering the current stock sell-off, the stock is still up 45% in the previous year, significantly exceeding the S&P 500 over the same timeframe.
