Deckers Outdoor Corp. (NYSE: DECK) shares fell more than 11% in intra-day trading on Friday after the footwear maker issued a disappointing annual forecast and warned that U.S. tariffs could dampen demand.

The company, best known for its Hoka and UGG brands, said it has been navigating heightened uncertainty surrounding the Trump administration's sweeping tariffs. Ongoing concerns that higher import costs may force retailers to raise prices have prompted many consumers to cut back on discretionary spending.

Tariffs on key manufacturing partners, including Vietnam, have raised fears of higher production costs. Deckers previously delayed issuing full-year guidance in May due to policy uncertainty but now expects total tariff-related expenses of roughly $150 million, down from earlier projections of $185 million.

To cushion margins, Deckers introduced selective price increases in July and plans additional adjustments through the fiscal year. CEO Stefano Caroti told analysts that consumers will likely remain “cautious” in the second half as higher retail prices filter through.

Annual sales are forecast at around $5.35 billion, below the $5.45 billion consensus estimate.