I own not one, but two pairs of Ugg slippers — and before you judge me, hear me out. One pair is strictly for indoor lounging, aka my “indoor Uggs.” They’re soft, they’re cozy, and they’ve seen some things.
The other? Those are my “outdoor Uggs” (yes, it’s a thing), reserved for dog walks, Trader Joe’s runs, and looking half-put-together before 9 a.m. (or anytime really).
If you’re like me, you get it. Uggs have become more than just boots — they’re a lifestyle staple, a comfort essential. And for fans of the brand, investing in multiple pairs doesn’t feel ridiculous. It feels necessary.
So when a company like Deckers (parent of both Ugg and Hoka) raises alarms about how customers are behaving, it feels…unsettling.
Related: Nike, rivals sound alarm on looming threat
Ugg and Hoka shoppers are loyal, intentional, even cult-like. These are brands people go out of their way to buy.
But lately, something’s felt off. Deckers, best known for comfy Ugg boots and sleek Hoka sneakers, made headlines with some less-than-cozy news: customers are starting to change how they shop.
For a brand that’s thrived on loyalty and momentum, that’s not the vibe.
What really grabbed my attention? Deckers (DECK) didn’t just hint at a blip. It called out a real shift in consumer behavior. And that’s where things start to get interesting.
Image source: Shutterstock
Deckers, maker of Hoka and Ugg, flags troubling consumer behavior
CFO Steve Fasching didn’t mince words during the earnings call. While revenue came in strong and the company expanded its buyback plan, Fasching flagged a clear challenge.
Deckers expects to feel some strain from raising prices amid an already cautious consumer landscape. He described this as potential “demand erosion” that could weigh on performance in the months ahead.
He also acknowledged that while Deckers is evaluating price hikes and working with factory partners to share costs, it will still have to absorb a chunk of the $150 million tariff hit expected in FY26.
Related: Nike delivers bad news for customers
That pressure, paired with slower-than-hoped growth in HOKA’s direct-to-consumer sales, created the cautious tone that spooked investors.
Still, the team remains upbeat about the long term. CEO Stefano Caroti reminded listeners that HOKA’s brand awareness in the U.S. had jumped to 50%, a 25% leap from last year.
International growth continues to outpace domestic sales. “I personally never felt stronger about the power of this brand,” he said.
It was a message of confidence, but one clearly tempered by current headwinds.
Deckers’ warning raises red flags for retail brands
If a brand as beloved as Ugg — or as buzzy as Hoka — is starting to feel the pinch, that doesn’t bode well for the rest of retail.
Deckers’ warning adds to a growing chorus of companies sounding the alarm on shifting consumer habits.
After years of pandemic-fueled spending on comfort and performance gear, shoppers are pulling back, and even the strongest brands are starting to feel it.
What makes HOKA’s situation unique is how strategic its wholesale push has been. The brand is betting big on getting into more stores and letting consumers physically try on updated styles in-store before committing.
According to Fasching, the new designs are strong performers, but the shift toward trying them in-store first is putting short-term pressure on digital sales.
This dynamic isn’t a death knell, but it is a signal.
Deckers is still viewed as a premium brand leader with a strong balance sheet. However, the idea that even its most reliable shoppers might pause on purchases is making the rest of the industry pause, too.
Meanwhile, Deckers’ stock has since been tracking for its biggest weekly decline in months. Whether this is a speed bump or a turning point depends on whether consumers start clicking “buy” again…or keep hesitating.
One thing’s clear: if even the indoor-and-outdoor-Uggs crowd is tapping the brakes, every retailer should be paying close attention.
Related: Popular sneaker company raising prices
