BUZZ-Deckers shares fall as sales miss expectations; Piper downgrades rating to "underweight"

October 23 -

** The share price of Hoka’s parent company, Deckers Outdoor (DECK.N), fell 9.71% in pre-market trading to $77

** The company stated that significant price cuts by competitors (link) put pressure on second-quarter sales, highlighting the challenges faced by high-end footwear brands as consumers become more selective in their spending

** The company reported sales of $1.48 billion for the quarter ended September 30, below analysts’ expectations of $1.51 billion, though profit for the period rose by 27%

** Piper Sandler downgraded its rating from “neutral” to “underweight” and cut its target price from $100 to $75

** The broker expects a challenging market environment to continue until next summer or autumn; in addition, demand for some HOKA products is below expectations, and high inventory of Clifton 10s may further weigh on the share’s valuation

** Of 28 brokers, 13 rate the stock as “buy” or higher, 11 as “hold,” and 4 as “sell”; the median target price is $105 — LSEG compiled data

** The stock has fallen about 17.7% so far this year, underperforming the S&P 500 Index .SPX, which has risen 11.9% during the same period

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