Deckers Out of doors (DECK) shares plunged Friday, regardless of the shoemaker reporting gross sales outcomes for the newest quarter that beat analysts’ estimates.

The corporate, which sells Hoka, Ugg, and Teva footwear, advised traders late Thursday that the corporate does not see demand flagging for its most sought-after footwear. Nonetheless, Deckers shares had been down 19% in afternoon buying and selling Friday, main S&P 500 decliners, amid investor considerations about demand developments.

The footwear firm mentioned fiscal third-quarter quarter’s gross sales hit a report $1.83 billion, rising 17% year-over-year and coming in increased than the $1.73 billion analyst consensus estimate from VisibleAlpha. Deckers reported $3 in earnings per share (EPS) for the quarter ended Dec. 31, whereas analysts polled by VisibleAlpha had estimated the corporate would have $2.60 in EPS.

Deckers Raises Full-12 months Gross sales Outlook

Deckers now expects gross sales to develop 15%—moderately than 12%—and hit $4.9 billion for the complete fiscal yr, Chief Financial Officer Steven Fasching mentioned in a Thursday earnings convention name, in keeping with a transcript supplied by AlphaSense. He mentioned Deckers does not count on Ugg or Hoka to lose traction after that they had year-over-year gross sales will increase of about 16% and 24%, respectively, final quarter.

“The demand for these manufacturers continues to be unbelievable,” Fasching mentioned on the decision.

UBS Says Investor Considerations ‘Misplaced’

The pullback presents a possibility to purchase Deckers shares, UBS analysts wrote in a Friday observe. Buyers could fear that Hoka is decelerating and Ugg can’t repeat its robust outcomes, however the report referred to as these fears “misplaced.”

“Hoka has a strong new product pipeline,” the UBS observe mentioned, whereas calling Ugg one in every of “the strongest informal footwear manufacturers on this planet” that is reworking right into a “true four-season model» after launching as a winter shoe.

UBS raised its price target for Deckers to $284 from $267. The brand new goal represents a premium of about 57% over the inventory’s present worth.

Even with at this time’s selloff, the inventory is up 45% over the previous 12 months, simply outpacing the S&P 500 over that interval.