Deckers Outdoor Corp. fell to its lowest price in three years after cutting its forecast for annual sales growth by almost two-thirds amid declining demand for its UGG brand sheepskin boots.
The shares tumbled 17 percent to $29.48 at the close in New York, its lowest closing price since October 2009. The Goleta, California-based company’s shares have slid 61 percent this year.
Sales this year will grow 5 percent, down from a previous projection of about 14 percent, the company said yesterday in a statement. UGG sales fell 12 percent in its most recent quarter, the company said. Chief Executive Officer Angel Martinez said in the statement that price increases the company took to offset higher sheepskin costs were hurting sales.
UGG accounted for 87 percent of Deckers’ $1.38 billion in sales in 2011. The company also makes Teva sandals and Sanuk shoes.