Deckers hit by dual downgrades as analysts flag risks

Investing.com -- Deckers Outdoor shares are under pressure Tuesday, currently down 3.8% premarket, after two firms downgraded the stock, citing concerns over slowing demand trends and fading upside after a sharp rally.

Baird analyst Jonathan Komp cut Deckers to Neutral, saying he sees “a lower degree of confidence in the upside potential over the next few quarters” following a 35% rebound since November.

Komp said the stock now has “<20% upside to our price targets” and sits in a tougher position as investors rotate toward higher-beta names ahead of what Baird expects to be a more supportive macro backdrop in 2026.

The firm said its downgrade reflects less compelling risk-reward after strong recent gains, even as it maintains an overall positive view on the sector.

Piper Sandler also moved to the sidelines, with analyst Anna Andreeva downgrading Deckers to Underweight and warning of “cracks in the HOKA TAM.”

She said the company has leaned more heavily on discounting across both HOKA and UGG since the summer, raising questions about “promotions as an unhealthy customer acquisition tool” and potential conflict between direct-to-consumer and wholesale channels.

“DECK’s profitability is well above athletic peers and could further reset as the company continues to invest, especially in HOKA’s brand awareness as it grows internationally,” wrote Andreeva.

She also flagged risks that the athletic cycle is flattening, with casual styles normalizing after outsized growth and HOKA lacking diversification beyond max-cushion running.

Updating two key HOKA styles just a year after the prior launches, she said, suggests the brand’s total addressable market “is smaller than the bulls contemplate.”

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