* Q1 EPS $0.20 vs est $0.25
* Sees FY EPS down 9-10 pct vs prior flat earnings outlook
* Shares down 15 pct in extended trade
By Arpita Mukherjee
April 26 Shoe maker Deckers Outdoor Corp
slashed its full-year earnings forecast as it expects
its margins to take a hit from high sheepskin costs.
The company's shares fell 15 percent to $58.77 after market.
The stock closed at $69.46 on Thursday on the Nasdaq.
Deckers said it expects 2012 earnings per share to decrease
about 9 percent to 10 percent, compared with its prior forecast
of flat earnings.
Deckers, which also reported lower-than-expected quarterly
results due to a dip in margins, said sheepskin costs were up as
much as 40 percent this year from 2011 levels.
The Goleta, California-based company now expects gross
margins to fall 250 basis points in 2012, compared with its
previous forecast of a fall of 200 basis points.
Gross margins fell to 46 percent in the first quarter from
50 percent in the year-ago period on rising product costs and
higher sales of its lower-priced Teva brand and non-classic UGG
brands, Deckers said in a statement.
The company also said sales of its UGG boots, which have
been spurring growth at the company for the past several
quarters, will rise by about 10 percent in the year, down from
its previous guidance of about an 11 percent rise.
Boot sales are typically strong in January and February but
this year orders fell due to the mild winter weather, the
The second mildest U.S. winter on record has hurt sales of
coats, sweaters and boots at many retailers.
First-quarter profit fell to $7.9 million, or 20 cents per
share, from $19.2 million, or 49 cents per share, last year.
The company, which competes with Skechers USA Inc
and VF Corp's Timberland, said revenue rose 20 percent
to $246.3 million.
Analysts had expected the company to earn 25 cents per share
on revenue of $246.5 million, according to Thomson Reuters
Inventories rose 94.6 percent to $208.5 million as of March