Deckers Outdoor Down 25% on Disappointing Earnings and Guidance
Deckers Outdoor (NASDAQ: DECK) is trading lower on the session following its Q1 earnings announcement. The company reported yesterday an EPS of $0.20 vs $0.25 estimates and revenues of $246.3 million vs $247.42 million estimate. Deckers also guided Q2 EPS $(0.60), which may not be comparable to $(0.39) estimates.
Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors stated: “Our first quarter performance was mixed versus our expectations. Sales growth was driven by the addition of the Sanuk brand combined with increased demand for the UGG brand spring line, partially offset by softness in boots due to the unusually warm weather. The difference in the channel mix versus projections, along with some higher closeouts for the Teva brand and non-Classic UGG brand styles, put some additional pressure on overall gross margins on top of the higher product costs we had forecasted.”
Deckers Outdoor is currently trading at $52.10, a loss of $17.36 or 24.99%.
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