Deckers Shares Plunge After Warning on International Trade Landscape
Deckers, the parent company of popular brands like Hoka, Ugg, and TEVA, saw a significant drop in its shares by 14% during after-market trading on Thursday. The cause? Warnings about the uncertain international trade landscape.
In the fourth quarter of fiscal year 2025, Hoka led the company’s sales with a whopping $586.1 million in net sales. Ugg also saw a 3.6% increase in net sales, reaching $374.3 million. However, Deckers has decided to withhold its guidance for fiscal 2026 due to the unpredictable global trade policies.
Despite some growth in its top brands, the company’s cautious approach caused its shares to plummet by 14% in after-market trading, according to WWD. Instead of providing full-year guidance, Deckers only issued guidance for the first quarter of fiscal 2026, expecting net sales between $890 million and $910 million. This falls below expectations, which predicted net sales between $880 million and $973 million, according to Yahoo Finance.
In the final quarter of fiscal 2025, Deckers saw a 6.5% increase in net sales, reaching $1.02 billion compared to $959.76 million the previous year. Net income also rose from $127.55 million to $151.41 million. As expected, Hoka led the way with $586.1 million in net sales, while Ugg saw a 3.6% increase to $374.3 million. However, the company’s “Other” brands division, which includes Teva, Ahnu, and Koolaburra, saw a 6.3% decrease in net sales, reaching $61.3 million.
Despite these fluctuations, Deckers’ net sales for the full fiscal year 2025 increased by 16.3% to $4.99 billion, with a net income of $966.09 million. The company’s concerns about the international trade landscape are shared by many in the footwear and sneaker industry, as US President Donald Trump’s controversial tariff policies are set to take effect this summer. This has already led to Nike announcing price increases, with competitors like Adidas and Puma likely to follow suit. Stay tuned to Hypebeast for the latest news and developments in the footwear industry.
Read Full Article: Deckers, Parent to Hoka, Ugg, and More, Sees Shares Plunge After Warning on International Trade Landscape
