Deckers shares stumble as shopping season takes off
In a modestly up day for the markets, Goleta-based Deckers Brands was trading lower on Oct. 24 after its earnings projections for the third quarter, which includes holiday shopping, came in below Wall Street expectations. The firm was formerly known as Deckers Outdoor Corp.
Deckers shares fell about 3 percent to $85.45 at mid-day trading after the footwear maker said that it expected to earn $4.46 per share, compared to average estimates of $4.75 per share. The announcement was made after the markets closed on Oct. 23.
The Goleta-based owner of Ugg, Teva, Simple, Sanuk and other popular footwear brands is a bit of a bellwether for holiday shopping and the overall retail climate.
On Oct. 23, the company said second quarter earnings, for the period ended Sept. 30 were $40.73 million or $1.17 per share, topping estimates of $1.03 per share and higher than the $33.06 million or 95 cents it earned a year ago.
Revenue for the quarter came in at $480.30 million for the quarter, up 24.2 percent from the 2013 quarter and higher than the consensus estimate of $457.81 million.
Deckers’ labels, notably Ugg, have become a large part of the footwear marketing effort for major retailers such as Nordstrom. The company also has been building up its own retail outlets as well as online sales channels.