NEW YORK ( TheStreet) -- Shares of Deckers Outdoor (DECK) were getting hammered in late trades on Thursday after the fashion footwear seller missed Wall Street's consensus profit view because of weakness in gross margins and lowered its full-year outlook.
The Goleta, Calif.-based company, whose brands include UGG boots and Teva scandals, earned $8 million, or 20 cents a share, on sales of $246.3 million in the first quarter, below the average estimate of analysts polled by Thomson Reuters for a profit of 25 cents on revenue of $246.5 million.
For the second quarter, Deckers sees year-over-year revenue growth of 8%, a loss per share of 60 cents a share and gross margin of 43%, a sequential decline from 46% in the latest quarter. The company lowered its view for fiscal 2012 to a year-over-year decrease of 9-10% in earnings per share from a prior view for a flat performance.
The stock was last quoted at $56.91, down 18%, on volume of more than 400,000, according to Nasdaq.com."Our first quarter performance was mixed versus our expectations," stated Angel Martinez, President, Chief Executive Officer and Chair of the Board of Directors. "Sales growth was driven by the addition of the Sanuk brand combined with increased demand for the UGG brand spring line, partially offset by softness in boots due to the unusually warm weather. The difference in the channel mix versus projections, along with some higher closeouts for the Teva brand and non-Classic UGG brand styles, put some additional pressure on overall gross margins on top of the higher product costs we had forecasted." Deckers attributed its lower full-year outlook to the higher costs of goods sold and increasing levels of closeout sales. Check out TheStreet's quote page for Deckers Outdoor for year-to-date share performance, analyst ratings, earnings estimates and much more.