BB&T Tosses $DECK into the Fires, Predicts the Company Will Warn Soon

In an especially glum note on the state of retail, specifically DECK, BB&T is defying the government’s assessment of retail sales and downgrading DECK, citing a bleak retail outlook. Moreover, they believe the company is going to guide down, so this downgrade is an attempt to get ahead of that.

Via Briefing

BB&T Capital Mkts downgrades DECK to Underweight from Hold given bleak wholesale channel commentary from footwear, apparel, and accessories companies, coupled with Macy’s (M) and Nordstrom’s (JWN) dismal Q1’16 reports and outlooks. Wholesale sell-ins remain tough, with many accounts opting instead to chase in-season demand, and as such, firm continues to believe consensus expectations for FY’17 remain too bullish. They expect co to guide below current consensus numbers and they proactively lowered ests in early April. YTD, shares of DECK have risen ~13%, outperforming the overall footwear manufacturing sector, which they believe has been due partly to the possibility of M&A activity.