Back to top

Bear of the Day

Zacks Equity Research

Deckers Outdoor Corp. (DECK)

DECK

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Deckers Outdoor's (DECK) first-quarter 2012 earnings of $0.20 per share missed the Zacks Consensus Estimate of $0.25, and fell over 50% from the prior-year quarter as the unfavorable weather conditions adversely impacted the sales of UGG boots. Rise in sheepskin prices and increased operating expenses also hurt the bottom line. Consequently, management lowered its fiscal 2012 outlook.

Management now projects earnings to decline between 9% and 10%. Earlier, the company had forecasted earnings to remain flat. Deckers now expects total revenue growth of 14%, down from 15% forecasted earlier. The company also forecasts a gross profit margin contraction of 250 basis points due to increase in costs of goods sold and higher closeout sales level.

For the second quarter of 2012, management now anticipates 8% growth in total revenue and a loss per share of $0.60. Further, over-reliance on the UGG brand, intense competition and sluggish economic recovery remain matters of concern. Consequently, we have downgraded our recommendation on Deckers to Underperform.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDS ENLC 36.29 +1.60%