Deckers Outdoor Shares Test Critical Support Level Amid Analyst Divide

The investment community finds itself sharply divided over Deckers Outdoor Corporation as the footwear company’s stock experiences its most challenging period in recent memory. With shares trading near multi-year lows, financial experts are debating whether current prices represent a buying opportunity or signal further declines ahead.

Mixed Signals from Financial Institutions

Market analysts have staked out opposing positions on Deckers’ prospects. TD Cowen maintains its “Buy” recommendation despite substantially reducing its price target to $125. Similarly, UBS continues to view the stock favorably with a slightly trimmed target of $157. These optimistic assessments contrast sharply with more bearish outlooks from Wells Fargo and Bernstein, both setting their expectations at just $100 per share. The stock currently trades around $96, placing it near its 52-week low.

The primary concern driving this divergence of opinion centers on potential tariff increases for goods manufactured in Vietnam. Chief Financial Officer Steven Fasching has previously alerted investors that unabsorbed tariff expenses could reach $185 million by fiscal year 2026. These projected costs are now directly influencing analyst forecasts and contributing to the stock’s downward pressure.

Should investors sell immediately? Or is it worth buying Deckers Outdoor?

Strong Fundamentals Versus External Pressures

Despite the negative sentiment, Deckers recently reported impressive operational performance. First-quarter revenue jumped 17% to $965 million, while earnings per share advanced by 24%. The HOKA brand celebrated its strongest quarterly performance in history, and international markets shone with 50% growth.

This creates a fundamental tension for investors: the company’s solid brand strength and operational achievements are being overshadowed by macroeconomic uncertainties. Fears surrounding trade conflicts, intensifying competition in the athletic footwear segment, and concerns about shrinking profit margins have collectively weighed heavily on the share price. Since the beginning of the year, Deckers stock has lost more than half its market value.

Critical Earnings Report Approaches

Attention now turns to October 23rd, when Deckers is scheduled to release its second-quarter results. Market expectations remain divided—will HOKA and UGG continue their growth narratives, or will the pessimists’ worst fears be confirmed? The coming days will determine whether shares have established a sustainable foundation at approximately $96 or if the downward trajectory will persist.