Bloomberg News

Deckers Drops Most in More Than a Year After Projecting Loss (2)

February 28, 2014

Deckers Outdoor Corp. (DECK:US), the maker of Ugg boots and Teva sandals, dropped the most in more than a year after forecasting an unexpected first-quarter loss.

The Goleta, California-based company projected a loss of 16 cents a share for the current quarter. Analysts had estimated a profit of 10 cents on average, according to data compiled by Bloomberg.

The operating expenses of opening 28 additional stores is weighing on profit, the company said yesterday in a statement. Revenue also will grow 6 percent in the period, Deckers said. That was half the 12 percent rate that analysts predicted.

Deckers fell 12 percent to $74.35 at the close in New York for the biggest one-day decline since Oct. 26, 2012. The shares have slid 12 percent this year, compared with a 0.2 percent drop for the Standard & Poor’s 500 Consumer Discretionary Index.

In the fourth quarter, Deckers reported a 44 percent jump in net income to $140.9 million, or $4.04 share, from $98.1 million, or $2.77, a year earlier. Revenue advanced 19 percent to $736 million.

To contact the reporter on this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net


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Companies Mentioned

  • DECK
    (Deckers Outdoor Corp)
    • $92.31 USD
    • 1.36
    • 1.47%
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