Susquehanna lowered its rating for Deckers Outdoor to negative from neutral, citing the prospect of lower earnings due to increased promotional discounting.
"We would sell DECK as the health of the UGG brand is clearly at risk, as promotional activity has already begun. Ugg.com has introduced $20 rewards certificates that are good in store or online," analyst Sam Poser wrote in a note to clients Thursday.
"We don't believe DECK thinks the rewards certificates are a promotional action, but, based on our checks, it appears as if UGG's wholesale partners view this as the commencement of a promotional fall season."
Poser's picks have a 11.7 percent one-year average return with a 58 percent success rate, according to analyst ranking service TipRanks, placing him in the top 3 percent of all Wall Street analysts covering any industry.