Why the Stock Price of the Maker of Hoka and Ugg Footwear Plunged Friday

Core Insights - Deckers Outdoor (DECK) shares fell 19% despite reporting fiscal third-quarter sales of $1.83 billion, which exceeded analysts' expectations of$1.73 billion, reflecting a 17% year-over-year growth [1][2] - The company maintains a positive outlook on demand for its key brands, Hoka and Ugg, which saw year-over-year sales increases of approximately 16% and 24%, respectively [3][6] - UBS analysts view the recent stock decline as an opportunity, asserting that concerns regarding Hoka's demand and Ugg's performance are unfounded, and they have raised their price target for Deckers to $284, indicating a potential upside of about 57$3 for the quarter ended December 31, surpassing the consensus estimate of $2.60 [2] - The company has raised its full-year sales growth forecast from 12$4.9 billion for the fiscal year [3] Market Reaction - Despite strong earnings and positive sales outlook, Deckers shares experienced a significant drop, leading declines in the S&P 500 [1][6] - The stock has still appreciated 45% over the past 12 months, outperforming the S&P 500 during that period [5]