What happened?
Shares of footwear and apparel major Deckers (NYSE: DECK) rose 3.1% in the afternoon session after a UBS analyst maintained a Buy rating on the stock, signaling continued confidence in the company despite a minor adjustment to his price target.
The company lowered its price forecast for the stock to $157 from $158. This small change reflected a slower-than-expected recovery in U.S. direct-to-consumer growth for the company's HOKA brand. However, the report also noted that Deckers' other premium brands, UGG and Teva, continued to perform strongly. This strength contributed to the company's overall revenue stability and provided a positive counterbalance to concerns about HOKA's pace of growth.
After the initial bounce, shares cooled to $103.34, up 3.1% from the previous close.
Is now the time to buy Deckers? You can find our full analysis report here.
What does the market tell us?
Deckers shares are somewhat volatile, with 14 moves of more than 5% in the last year. In this context, today's move suggests that the market considers this news meaningful, but not something that would fundamentally change its perception of the company.
The last big move we wrote about came 11 days ago, when the stock fell 3.2% after news that critical comments from President Donald Trump had sparked concerns about worsening trade relations with China.
The president's comments on social media that China has “become very hostile” have caused significant volatility in broader markets. This has particularly impacted the leisure sector, which is very sensitive to economic sentiment and discretionary spending. Leisure stocks, which include companies in the travel, entertainment and hospitality sectors, rely on consumers feeling confident enough to spend on non-essential goods and services. Trump took aim at China's tighter controls on rare earth metals, which are key components of many technology products, from electric vehicles to defense systems. The president's tone and suggestion to cancel a meeting with President Xi triggered a rapid sell-off in the market.
Earlier this week, China announced new export controls on the critical minerals. Beijing's Ministry of Commerce said foreign suppliers now require government approval to export products containing certain rare earth materials. These materials are essential for the production of high-tech goods such as computer chips, electric vehicles and defense technology. Analysts viewed the move as a strategic affirmation of China's dominance in the global rare earths supply chain, especially amid ongoing trade tensions. The prospect of rising tariffs raises concerns about economic headwinds that could lead to a slowdown in consumer spending. As consumers cut their budgets in response to economic uncertainty, discretionary purchases are often the first to be cut, directly impacting the revenues of companies in this sector.
Deckers is down 49.5% year-to-date and is trading at $103.34 per share, 53.7% below its 52-week high of $223.11 set in January 2025. Investors who bought $1,000 worth of Deckers stock five years ago would now be considering a $2,504 investment.
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