Goldman cautious on mid cap athleisure, starts Crocs, Deckers at Sell

Investing.com -- Goldman Sachs began coverage of mid‑cap U.S. athleisure names with a cautious stance, arguing that stiffer competition and fickle consumer demand will separate winners from laggards in the crowded footwear and sportswear arena.

The brokerage started Deckers Outdoor (NYSE: DECK) and Crocs (NASDAQ: CROX) with Sell ratings, setting price targets of $90 and $88, implying about 15% and 18% downside, respectively.

It initiated Under Armour (NYSE: UA) at Neutral with a $7 target, roughly in line with the current share price.

Analysts said the athletic market still benefits from health‑and‑wellness trends and shorter product replacement cycles, but recent shifts in sneaker styles and heavier promotional activity have made it harder for brands to hold pricing power.

Nike’s slowdown, they added, is reshuffling shelf space and market‑share opportunities for rivals.

Deckers, owner of Hoka running shoes and Ugg boots, has “strong brands and room to expand overseas,” Goldman wrote, but faces “accelerating competition, particularly in running,” just as signs of cooling momentum emerge.

For Crocs, Goldman likes the company’s marketing flair and product pipeline yet sees “normalizing demand” for its classic clog and continued growing pains at the Heydude label limiting sales and margins.

The brokerage is more balanced on Under Armour, praising a strategic overhaul that prioritizes product discipline and channel mix.

Still, it sees “limited visibility” on when North American sales will re‑accelerate, a hurdle that could keep the stock range‑bound until the brand shows clearer progress.

Goldman uses a framework that weighs brand strength, margin trajectory and sales channels to rank stock opportunities. In the near term, the firm expects rising competition and shifting shopper preferences to create “bifurcated single‑stock outcomes” rather than a broad sector rally.

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