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Last week, Deckers Outdoor saw a price decrease of 10%, amidst a period of market volatility and broader economic concerns tied to newly imposed tariffs. While major indices like the S&P 500 experienced a 12% decline, Deckers' movement tracks somewhat similarly to these broader market trends. The intensified economic concerns and fluctuating stock movements in the wake of tariff announcements likely added weight to Deckers' price change, although no specific company events during this period were noted to directly impact the share price differently from the wider market shifts.
Deckers Outdoor has 1 weakness we think you should know about.
The 10% price decrease in Deckers Outdoor shares amid recent market volatility raises questions regarding its forecasts. With a five-year return of over 320.15%, investors may feel some unease as the company's stock faced a year where it did not outperform the US Luxury industry, which saw a substantial 28.9% decline. Over the past year, Deckers' returns also underperformed the broader US market, which witnessed a 5.8% decline. These comparisons highlight the changing momentum and provide context for recent shifts in performance.
The company's driving force, the expansion of UGG and HOKA brands globally, may face challenges from new tariffs, affecting revenue and earnings predictions. Analysts have pegged future revenue growth at 9.6% annually with expectations of US$1.1 billion earnings by 2028. This means meeting projected price targets, like the consensus of US$213.85, requires confidence in overcoming potential supply chain and currency challenges. Deckers shares currently trade at US$113.35, showing a significant gap to the analysts' price target, suggesting the market may be cautious about these forecasts amid ongoing economic shifts.
Assess Deckers Outdoor's previous results with our detailed historical performance reports.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.