Deckers Brands' share price tumbled by 19.7 percent after the company published lower than expected financial results for the third quarter ended Dec. 31 and reduced its own expectations for the full financial year. The stronger dollar and soft sales of Classic Ugg styles in October and November were cited as major factors. The group's total sales increased by 6.6 percent to $784.7 million in the latest quarter, compared with previously forecast growth of 10 percent, and net income grew by 7.5 percent to $149.4 million. Sales grew by 6.5 percent for Ugg, but they were off by 12.1 percent for Teva and by 7.9 percent for Sanuk, declining especially outside the U.S. Sanuk entered three important new markets: Australia, Brazil and Japan. Other brands generated sales of $14.6 million in the quarter, up by 96.5 percent from the year-ago period. The jump was primarily attributed to a big $7.2 million increase at Hoka One One, the recently acquired brand of running shoes, which is expanding its presence in the U.S. beyond the running specialty market, entering big generalist accounts such as The Sports Authority and Finish Line. More in Shoe Intelligence.

Topics