Deckers Outdoor Shares Face Institutional Shift as Tariff Refunds Boost Earnings Outlook
Allspring Global Investments reduced its stake in Deckers Outdoor Corporation by 35.6%, while tariff refunds recently bolstered the footwear maker's fiscal 2027 profit guidance.
Deckers Outdoor Corporation saw institutional portfolio adjustments as Allspring Global Investments Holdings LLC reduced its holdings by 35.6% during the third quarter. According to a regulatory filing reported by MarketBeat, the firm sold 287,857 shares, retaining 519,823 shares valued at $41,362,000, which represents 0.39% of the company. On Thursday, DECK shares opened at $88.42, trading below their 200-day moving average of $98.74, while the stock traded at 79.71 euros on Lang & Schwarz on Wednesday, November 11.
The institutional movement follows Deckers' second-quarter financial update, which featured net sales of 1.481 billion US dollars, reflecting a 3.5 percent increase year over year. HOKA brand sales grew 6.8 percent to 677.2 million US dollars. Diluted earnings per share came in at $2.31, topping analyst consensus forecasts of $1.79 and prior-year results of $1.82. However, quarterly revenue slightly missed analyst projections of $1.51 billion, according to MarketBeat.
Following the report, Deckers raised its fiscal 2027 diluted earnings outlook to a range of 7.80 to 7.95 US dollars per share. The company noted that the results and forecast benefited from IEEPA tariff refunds, including a 0.28 US dollar benefit in the second quarter and an estimated full-year total benefit of 0.52 US dollars from collections through October 8. Full-year net sales are projected between 5.700 billion and 5.725 billion US dollars, with expectations for high-single-digit expansion at HOKA and low-single-digit growth at UGG.
Wall Street opinions remain mixed, with MarketBeat noting a consensus rating of Hold and an average price target of $103.86 among 26 research analysts. Price targets adjusted in late October include Needham cutting its target to $96.00 while maintaining a buy rating, and BNP Paribas Exane lowering its target to $122.00 with an outperform rating. Meanwhile, The Goldman Sachs Group reaffirmed a sell rating with a $75.00 target, and Telsey Advisory Group set a market perform rating at $90.00.
Looking forward, the company faces a crucial test as UGG generates a major portion of direct-to-consumer sales during the late-November to mid-February holiday period. For the current fiscal year, Zacks reported a consensus earnings projection of $7.85 per share, while analysts surveyed by MarketBeat anticipate full-year earnings per share of 7.89.