As previously reported, Evercore ISI downgraded Deckers to Hold from Buy and reduced its price target to $60 from $65. Analyst Omar Saad said Deckers' Ugg brand is heavily reliant the US wholesale channel and the lack of direct control of the consumer touch points has caused promotion control issues. He believes 2017 is shaping up to be another fundamentally challenging year for Softline Retail and recommends reducing exposure to company's with significant profit exposure to traditionally channels. The analyst said the once-important layers of middleman, and mark-ups, are becoming obsolete in today's digital landscape where consumers have instant visibility into selection, brands, and price, brand building is achieved through social rather than traditional media, and the new standard of convenience is same-day delivery.

As previously reported, BofA downgraded Deckers Outdoor to Neutral from Buy with a price target of $860, down from $875, as the firm sees a better risk/reward elsewhere in the analyst's coverage. The firm is "not making a call that near-term trends at UGG and HOKA are breaking," it does note that expectations are high and expresses cautiousness that a softer-than-expected margin outlook could temper the pace of upward earnings revisions.