Deckers, Crocs slide on weak first-quarter profit outlooks (Global Markets) - Shares of shoemakers Deckers Outdoor Corp (DECK.O) and Crocs Inc (CROX.O) slumped in morning trade on Friday, after they forecast disappointing first-quarter earnings on rising costs of raw materials.Stock Market Predictions
Deckers shares slipped more than 12 percent on Friday, while those of Crocs fell 8 percent.
Deckers stock has lost almost a third of its value since October 2011, when it raised it full-year revenue outlook due to increased demand of its sheepskin boots.
The world's biggest athletic shoe maker Nike (NKE.N) has also faced higher costs of raw materials and labor, but has managed to pass these on to its customers by hiking prices.
Goleta, California-based Deckers expects first-quarter earnings per share to halve from last year due to rising sheepskin prices.
"With guidance clearly disappointing, we acknowledge shares could be in the penalty box near term," Susquehanna Financial analyst' Christopher Svezia wrote in a client note.
However, Svezia said he believes in Deckers' main UGG Brand and expects the forecast to prove conservative.
(Reporting by Chris Jonathan Peters & Meenakshi Iyer in Bangalore; Editing by Viraj Nair)
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