Deckers Outdoor Corp (NYSE) stock is down 5.7% at $80.41, after falling as low as $78.12 earlier, after the Hoka and Ugg parent reported mixed fiscal second-quarter results and lowered its full-year revenue outlook. The footwear giant reported earnings of $2.31 per share, topping Wall Street's estimate of $1.79, though the results included a 28-cent-per-share benefit from tariff refunds. Revenue rose 3.5% year over year to $1.48 billion, missing expectations of $1.51 billion. However, the company's reduced full-year sales forecast overshadowed the earnings beat, raising concerns about slowing demand.
Piper Sandler downgraded the stock to "underweight" from "neutral" and slashed its price target to $75 from $100. Several other analysts also issued price-target cuts.
DECK is now on track for its third consecutive loss. The stock had been trending higher for much of October, after its Sept. 30 three-year low of $77.20. Year to date, the equity is down 20.5%.
Though calls are still winning out on an absolute basis, puts have been more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), DECK's 10-day put/call volume ratio of 0.82 ranks in the 84th percentile of its annual range.
Lastly, Deckers sports a Schaeffer's Volatility Scorecard (SVS) of 89 out of 100, indicating the equity has consistently exceeded options traders' volatility expectations during the past year.
