Deckers Outdoor Falls After Forecasting Surprise Quarterly Loss

Deckers Outdoor Corp. (DECK), the maker of Ugg boots and Teva sandals, dropped as much as 20 percent in late trading 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 as low as $68 in extended trading after delivering the forecast. The shares had risen 0.3 percent this year through yesterday’s close, compared with a 0.6 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. Source :  http://www.bloomberg.com/news/2014-02-27/deckers-outdoor-falls-after-forecasting-surprise-quarterly-loss.html