Deckers tumbles as BofA flags tougher competition from Q2

Crocs

10/07/2024 16:15

** Footwear maker Deckers Outdoor shares  DECK.N  sink as
much as 9.2% at $853.07, on track for their worst day since
March 2020
    ** BofA analyst Christopher Nardone says UGG boots maker
will see a strong Q1 but business gets tougher from Q2 onward
    ** DECK is the biggest decliner on S&P 500  .SPX  index
    ** Nardone says Q1 is "likely the last quarter UGG will
benefit materially from prior price increases and much lower
discounting year-over-year"
    ** "Beyond Q1, we think much more difficult comparisons for
UGG and the continued competitive dynamic in specialty run will
temper the magnitude of beats needed to drive the multiple
higher," writes BofA in a client note 
    ** The Hoka sneaker maker has been riding on growing
popularity of its innovative footwear designs among Americans
    ** Peers On Holdings  ONON.N  slips 2.6%, Crocs  CROX.O 
down 3.6%, Skechers  SKX.N  dips 2.3% while Lululemon  LULU.O 
down 1.3%
    ** Out of 22 brokerages covering DECK, 16 rate it "buy" or
higher, five "hold" and one "sell"; their median PT is $1,089
    ** DECK is up 28% this year, including session's moves

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))