Why has Decker's Been Beaten Down so Badly?

Decker's is a footwear designer... and you know their brands

Their three major brands are UGG, Teva and Hoka.

The stock has tumbled since the shoe designer issued weaker-than-expected sales guidance, which it blamed on tariffs.

The most recent quarterly results (which ended Sept 30th) are somewhat promising. The company reported a profit of $1.82 a share, as net sales climbed 9.1% from a year ago to $1.43 billion.

Analysts were estimating a profit of $1.58 a share on net sales of $1.42 billion, according to FactSet.

Guidance looked weak, though. Deckers expects sales of $5.35 billion for its current fiscal year, ending in March, which came in below the Street’s expectations. CEO Stefano Caroti said he’s expecting a “more cautious consumer” over the period, due to tariffs causing price increases.

Overall, I'm going to start getting away from apparel brands. They have such soft moats (I've invested in lululemon and Nike in the past two years-- both have been some of my worst picks)