Deckers Outdoor Guides FY EPS Flat vs 2011

Full-Year 2012 Outlook Based upon current visibility, the Company expects full year revenues to increase approximately 15% over 2011 levels. The Company expects full year diluted earnings per share to be approximately flat with 2011 levels due primarily to the increase in sheepskin costs in 2012 compared to 2011, which the Company projects to adversely impact profitability by approximately $1.40 per diluted share. This guidance assumes a gross profit margin decline of 200 basis points from 2011 levels due to an increase in costs of goods sold, partially offset by selective price increases, an increased contribution from retail sales, and the addition of the Sanuk brand for the full year. This guidance also assumes SG&A as a percentage of sales of approximately 29%. Fiscal 2012 guidance assumes approximately $13 million, or $0.23 per diluted share, associated with the amortization and accretion expenses related to the Sanuk acquisition. Fiscal 2012 guidance also assumes that the Company's effective tax rate will be approximately 31%.