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Deckers Outdoor (DECK) is tumbling 16% after the company provided weaker-than-expected full-year revenue guidance and noted that it was facing multiple, upcoming challenges. DECK markets UGG footwear.
DECK's Guidance Miss and Challenges
In conjunction with DECK's results for the third quarter of its fiscal 2025, the company reported that it expects its full-year sales to come in at $4.9 billion, slightly below analysts' average estimate heading into the print of $4.93 billion. The footwear maker, however, does now expect its sales to increase about 15% in FY25, up from its previous outlook for a 12% increase.
A busy retail store full of customers trying on a wide range of footwear.
Among the adverse catalysts that DECK will have to overcome going forward are heavy discounts by its competitors, elevated freight costs, and the strong dollar, CFO Steve Fasching reported. Additionally, the CFO cited limited inventories of UGG footwear as another challenge and noted that the firm's gross margins will likely drop going forward from the high 60.3% level that DECK had achieved last quarter.
DECK's Q3 Results
The company's top line jumped 17% versus the same period a year earlier to $1.83 billion, surpassing analysts' average estimate by $100 million. DECK's Q3 earnings per share came in at $3, well above analysts' average estimate of $2.61.
The Recent Price Action of DECK Stock
In the last month, DECK has fallen 10%, while it has advanced 18% in the previous three months.
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Disclosure: None. This article is originally published at Insider Monkey.