Deckers Outdoor Faces Direct-To-Consumer Growth Slowdown, Analyst Downgrades Stock

Zinger Key Points
  • Truist analyst downgrades Deckers Outdoor to Hold.
  • HOKA's Direct-to-Consumer growth slowdown prompts segment forecast reduction; EPS estimates also lowered for FY24-26.

Truist Securities analyst Joseph Civello downgraded Deckers Outdoor Corp DECK stock to Hold from Buy and cut the price target to $864 from $983.

The analyst wrote that Truist Card Data indicated HOKA's Direct-to-Consumer (DTC) growth decelerated in mid-February and remained softer through March. 

Consequently, the analyst lowered the segment growth forecast to 25% (to $190 million) from ~40% (to $210 million).

The analyst said the recent market reactions to slowing growth have been extremely negative. 

Civello lowered EPS estimates to $27.10 (from $27.15) for FY24, $29.85 (from $31.00) for FY25, and $34.15 (from $36.00) for FY26.

Investors can gain exposure to the stock via Invesco S&P MidCap Momentum ETF XMMO and Pacer Lunt MidCap Multi-Factor Alternator ETF PAMC.

DECK Price Action: Deckers Outdoors shares are up 0.24% at $812.08 Thursday at publication.

Photo: HOKA shoes photo by Nattawit Khomsanit via Shutterstock

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