Jan. 7 at 6:40 PM
Baird downgraded Deckers Outdoor and Crocs to Neutral after strong rallies since mid-November reduced near-term upside to less than 20% versus price targets. The firm said the recent gains limit confidence in further upside over the next few quarters.
Baird remains positive on the broader apparel and footwear sector despite underperformance in 2025, expecting earnings momentum to improve in 2026 on easier comparisons, tax refund–driven spending, and margin gains from pricing and tariff mitigation. Under Armour Class A was added as a short-term trading idea through late May, citing high beta to a near-term macro improvement and signs of stabilizing fundamentals.
The firm said valuations remain attractive versus historical levels and highlighted On Holding, VF Corp, and Nike as preferred higher-beta names for 2026, all rated Outperform.
$DECK $CROX $ONON $NKE