DECK - Why Deckers Outdoor Shares Dropped 9.3% Today
2024-07-10 15:14:06 ET
Shares of Deckers Outdoor (NYSE: DECK) fell as much as 9.4% on Wednesday after an analyst note from M Science highlighted a slowdown in sales during June . As of 2:30 p.m. ET shares were down 6% on the day.
Data research firm M Science noted that its data showed a deceleration in sales for Hoka and Ugg brands during June. This wouldn't be particularly surprising given the slowdown reported by Nike last quarter and week guidance Nike for its fiscal first quarter. Consumers have been pinched by higher inflation and slow wage growth, which ultimately will lead to less discretionary spending on items like high-end shoes from Hoka.
There have been several signs that consumer spending is slowing for brands that rely directly on consumers and this is just another example of the trend. Lululemon Athletica has struggled recently, I mentioned Nike above, and hot brands like Celsius have seen channel checks report slowing growth.
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Why Deckers Outdoor Shares Dropped 9.3% Today