cheap leather ugg boots uk Profit warning trips up maker of Ugg shoes
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Deckers, the maker of Ugg shoes, sank the most in more than two years after the company forecast first quarter profits that trailed analysts’ expectations.
Deckers fell $15.82, or 13%, to $110.64, its biggest drop since October 2005. The stock has fallen 29% this year after more than doubling in 2007.
The company said it expects first quarter earnings to be equal to 75 cents a share, well below analysts’ estimates of 92 cents.
Deckers posted fourth quarter profits that almost tripled on sales of its Ugg line. Revenues rose 56% to $194.2 million, helped by a 62% increase in the Ugg unit to $177.7 million.
The company forecast 2008 sales growth of up to 25% and profit growth of 20% compared with 2007. Deckers reported ’07 profits of $5.06 a share on sales of $448.9 million.