NEW YORK, January 9, 2026, 15:10 (ET) — Regular session
- Deckers Outdoor shares fall about 4% in afternoon trade, reversing an early rise
- Needham removes the Hoka and UGG owner from its Conviction List, keeps Buy rating
- Next catalyst: expected Jan. 29 earnings, with promotions and margins in focus
Deckers Outdoor (DECK) shares fell 4.2% on Friday, slipping to $102.85 in afternoon trading after an early pop faded and the stock turned lower. Shares swung between $108.72 and $102.18.
The drop landed even as the broader market held firm, a sign traders were treating this as a stock-specific story. A weaker U.S. jobs report pushed investors to price in a longer pause in Federal Reserve rate cuts, a backdrop that can make growth stocks and consumer names twitchy.
Needham analyst Tom Nikic on Thursday removed Deckers from the firm’s Conviction List — a short roster of top picks — while keeping a Buy rating and a $115 price target. Nikic said Deckers’ UGG and Hoka brands look to be entering a “slower-growth stage,” and he flagged downside risk to margins. TipRanks
Needham pointed to what it called “fundamental cracks” last year, including declines in UGG’s direct-to-consumer business — sales through its own stores and website — and a slowdown in Hoka’s DTC growth. Needham also swapped in V.F. Corp (VFC) for Deckers on the Conviction List. Investing.com
Deckers had rallied 4.19% on Thursday to close at $107.36, snapping a two-day losing streak, but it remained more than 50% below its 52-week high, according to MarketWatch data. Nike and Under Armour rose on Thursday as well.
Deckers, based in Goleta, California, sells Hoka running shoes and UGG boots and earns revenue through both wholesale partners and its own channels. Investors have become more sensitive to markdowns — price cuts used to drive volume or clear inventory — because they can pressure margins and complicate relationships with wholesale customers.
But there’s plenty that can still go the other way. If Deckers shows steadier-than-feared demand at full price, or holds the line on margins despite promotions, the stock can rebound quickly — and it has done that before. A deeper promotional cycle would keep the pressure on.
The next test comes with Deckers’ quarterly report, expected on Jan. 29, when investors will look for updates on Hoka and UGG demand, the pace of discounting and any shift in profit outlook. Macro is close behind: the Fed’s next policy meeting runs Jan. 27-28.
