Deckers Stock Slumps as Hoka Maker Warns of Consumer Pullback Because of Tariffs, Higher Prices

Justin Sullivan / Getty Images With Friday's drop, shares of Hoka maker Deckers have lost more than half of their value in 2025

Key Takeaways

Deckers Outdoor shares took a hit Friday after executives said the Hoka maker expects consumers could pull back in the face of higher tariffs and prices. Its current-quarter outlook missed analysts' estimates compiled by Visible Alpha.

Deckers Outdoor (DECK) shares plunged Friday after the shoe and apparel maker gave a weaker-than-expected outlook, saying it sees a pullback from consumers because of tariffs and rising prices.

The stock was down nearly 14% in recent trading. It's lost more than half its value since the year began.

The company behind the Ugg and Hoka brands said it now anticipates full-year sales of about $5.35 billion, below the consensus of analysts surveyed by Visible Alpha.

CEO Stefano Caroti told investors during the company's earnings call, "we are anticipating a more cautious consumer as the full impact of tariffs and price increases will be felt here in the U.S.,” according to a transcript provided by AlphaSense. CFO Steven Fasching said the headwinds from tariffs may be partially offset by the company's mitigation strategies, which could include promotions to entice shoppers.

Why This Matters to Investors

Higher tariffs could mean rising prices for Deckers shoes and apparel as the company faces margin pressure. The company's warning that shoppers could pull back in the face of higher prices could also be taken as a concerning signal for consumer spending more broadly.

The downbeat outlook offset strong quarterly results. Deckers posted earnings per share of $1.82 for its fiscal second quarter on revenue that rose 9.1% year-over-year to $1.43 billion. Both figures topped analysts' estimates, driven by strong sales of the company's Ugg and Hoka brands.

Ugg sales surged 10.1% to $759.6 million, and Hoka sales grew 11.1% to $634.1 million. However, sales of other brands dropped 26.5% to $57.2 million.

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