Deckers Climbs as 2013 Sales Forecast Exceeds Estimates
Deckers Outdoor Corp. (DECK) jumped as much as 13 percent in late trading after the Ugg brand owner forecast a gain of about 7 percent in 2013 revenue that exceeded analysts estimates.
Deckers climbed to $43.50 at 5:24 p.m. in New York and earlier traded as high as $45.77. The Goleta, California-based company’s shares had risen less than 1 percent this year through today’s close, compared with a 6.7 percent gain for the Standard & Poor’s 500 Consumer Discretionary Index.
Investors were relieved that Deckers’s “anemic” outlook for the current year was not “as bad as feared,” Corinna Freedman, an analyst at Wedbush Securities in New York, said in an e-mail. Analysts had estimated a revenue gain of about 4.5 percent on average, according to data compiled by Bloomberg. Revenue growth in 2012 shrank to 2.7 percent from 38 percent a year earlier, Deckers said in a statement today.
Freedman rates the shares neutral, the equivalent of hold.
Deckers shares fell 47 percent last year amid investor concern that shoppers are switching from Ugg sheepskin boots to other leather boot styles. Ugg brand sales will climb 4 percent this year, after dropping 1.5 percent in 2012, Deckers said in its statement.
The stock more than doubled in 2010 and dropped 5.2 percent the following year.
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