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Stock Market & Financial Investment News

News Breaks
October 9, 2012
08:31 EDTWWWWolverine World Wide to complete acquisition of Collective Brands' Performance
Wolverine Worldwide announced that it will complete the previously announced acquisition of Collective Brands' Performance + Lifestyle Group, which consists of the Sperry Top-Sider(R), Saucony, Stride Rite and Keds brands, for a total purchase price of approximately $1.24B.
News For WWW From The Last 14 Days
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January 30, 2015
11:59 EDTWWWDeckers Outdoor plummets after missing Q3 estimates, cutting outlook
Shares of casual apparel and footwear maker Deckers Outdoor (DECK) are sinking after the company's third quarter results missed analysts' expectations. The company also lowered its outlooks for the fourth quarter and fiscal year 2015. WHAT'S NEW: Last night, Deckers Outdoor reported Q3 earnings per share of $4.50 and revenue of $784.7M, trailing analysts' consensus estimates of $4.52 and $813.7M, respectively. Direct-to-Consumer comparable sales increased 7.6% over the same period a year ago. UGG brand sales increased 6.5% to $736M, compared to $690.9M for the same period last year. E-Commerce sales increased 25.2% to $146.9M compared to $117.3M for the same period last year. Gross margin increased 180 basis points to 52.9% compared to 51.1% for the same period last year. Deckers also announced that its board of directors approved the repurchase of an additional $200M of the company's common stock. WHAT’S NOTABLE: Looking ahead to Q4, Deckers Outdoor cut its EPS view to 0c from 15c, well below analysts' consensus estimates of 13c. The company still expects Q4 revenues to increase approximately 10% over the year-ago period, versus analysts' estimates $327.17M. The company cited gross margin pressure from foreign currency exchange rates for the weak forecast. Additionally, Deckers lowered its FY15 EPS view to $4.58 from $4.71, well short of the consensus of $4.77. The company also cut its FY15 revenue outlook to approximately $1.8B, down from the previous guidance of approximately $1.825B, trailing analysts' consensus estimates of $1.83B. Deckers now sees FY15 UGG Brand revenues up approximately 11% over last year, down from previous guidance of approximately 14%, and sees FY15 Teva and Sanuk brand revenues up low double digits over the year-ago period. The FY15 guidance assumes a gross profit margin of approximately 49%, an operating margin of approximately 12.5% compared to previous guidance of approximately 13% and an effective tax rate of approximately 27% compared to previous guidance of 29%. ANALYST REACTION: This morning, analyst commentary was mixed. Research firm Telsey Advisory downgraded Deckers Outdoor to Market Perform from Outperform following the Q3 report due to the UGG shortfall and lack of near-term catalysts. Telsey also lowered its price target on the shares to $80 from $98. Conversely, Jefferies said Deckers’ risk/reward is favorable at current levels. Jefferies said it continues to view Deckers Outdoor as a "compelling investment opportunity" despite the Q3 sales miss. It believes the UGG brand is "still a winner" and that the company has lots of opportunity to expand margins. The firm lowered its price target for Deckers’ shares to $110 from $130 and kept a Buy rating on the name. Susquehanna, which has a Positive rating but lowered its price target to $83 from $117, believes the weakness in Deckers Outdoor shares is overdone. The firm sees a stock buyback as a possible near-term catalyst, as well as the potential for a dividend as supporting the shares. PRICE ACTION: In late morning trading, Deckers Outdoor fell $15.05, or about 18.3%, to $67.22 on nearly six times its average daily trading volume. Including today’s pullback, the stock has lost approximately 13% over the past twelve months. OTHERS TO WATCH: Other casual apparel/footwear makers include Skechers USA (SKX), down 2%, Wolverine World Wide (WWW), down 2.16%, Rocky Brands (RCKY), down 2.85%, and Crocs (CROX), down 0.75%.

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