Deckers Outdoor Corp. (NYSE: DECK)
On Thursday February 4th 2016, Decker’s reported their quarterly earnings which, while beating expectations on the bottom line numbers, missed on upcoming revenue forecasts – sending the shares plummeting in aftermarket trading in a frenzied session. The maker and seller of well known products in the apparel, accessories, and luxury footwear sectors for shoppers reported earnings of $4.78 per share which was better than the expected $4.75 per share. However, revenues coming in at $795 million disappointed and was way below expectations of $831 million.
This sent the shares spiraling down nearly 10% to close at $44 as of the 8 p. m. close in the after market trading session. During the regular session shares were down $1.33 or 2.65% at $48.78.
In the price chart- which goes back to roughly March of 2015- it is easy to see the price channel that the stock has been in with green arrows showing support on the lower trend line and the red arrows showing the resistance trend- line above. The elliptical area is where shares will likely open for trading on Friday morning. It will likely be right on that lower trend- line that has been holding up. Many traders and longer-term investors will be watching to see how that trend line holds or folds to position their trades.
Deckers CEO Comments
CEO Angel Martinez explained some of Deckers’ difficulties. “Our third quarter was more challenging than we expected as warm weather and weak store traffic across retail pressured demand,” Martinez said. The CEO said that, despite successful efforts to diversify beyond Uggs, Deckers needs to accelerate its efforts. To move forward more aggressively, Martinez said that Deckers would streamline its organization. Moves of the Sanuk and Ahnu brands will involve closing local offices, and Deckers will create two brand groups going forward. The Fashion Lifestyle group will include Ugg and Koolaburra brands, and Teva, Sanuk, and Hoka One One will go into the Performance Lifestyle category. Deckers also anticipates closing 20 retail store locations, and looking for other opportunities to cut costs, with the goal of producing $35 million in annual savings.- TheMotleyFool
Deckers Outdoor Corporation designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. It offers luxurious comfort footwear, handbags, apparel, home, and cold weather accessories under the UGG brand name; casual sandals, shoes, and boots under the Teva brand name; and action sport footwear under the Sanuk brand name. The company also provides outdoor performance and lifestyle footwear products under the Ahnu brand name; running footwear under the Hoka One One brand name; footwear for culinary professionals under the MOZO brand name; and dress and dress casual footwear products under the TSUBO brand name. It markets its products primarily to specialty retailers, selected department stores, outdoor retailers, sporting goods retailers, shoe stores, and online retailers. The company also sells its products directly to end-user consumers through its Websites and retail stores, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia Pacific, Canada, Latin America, and internationally. As of May 28, 2015, it operated 142 company-owned and operated retail stores. The company was founded in 1973 and is headquartered in Goleta, California.