Outdoor financials: Deckers' shares fall on analyst downgrade, plus West Marine

Shares of Deckers Outdoor, parent of Teva, Ugg and Simple, fell after Credit Suisse analysts expressed concerns that the company's Ugg brand has limited growth potential, and West Marine opened a flagship store in Florida.
Author:
Updated:
Original:

Deckers' shares fall on analyst downgrade

Shares of Deckers Outdoor (Nasdaq: DECK), parent of Teva, Ugg and Simple, fell after Credit Suisse analysts expressed concerns that the company's Ugg brand has limited growth potential, initiating coverage of the company with an "underperform" rating.

Analysts Omar Saad and Spencer Hill wrote in a research note that it appears the Ugg product line is reaching saturation in the United States and that future growth will be minimal. They estimate that Ugg sells nearly three pairs per 100 people in the United States each year. The rate is much higher among the brand's target demographic, they added.

While Ugg owners buying replacement pairs will keep sales from collapsing, the analysts said they don't believe there are enough buyers to offset the number of customers who no longer want or can no longer afford the product in the weak economy.

Shares of Deckers shed $4.45 to close at $53.24 on Mar. 27. The stock has ranged from $37.24 to $146.60 over the past year.

West Marine opens flagship store in Florida

West Marine (Nasdaq: WMAR) has opened its flagship and largest store in Jacksonville, Fla. The company said it chose Jacksonville for its 30,000-square-foot prototype because of the boating opportunities and culture in the area, the success of the existing stores and the centralized location at the Markets at Town Center.

Aimed at boaters, sailors, anglers and water sports enthusiasts, the store is about four times larger than the company's average size store and will offer 16,000 national and local products compared with 7,000 to 8,000 products in the average store. The store also has skylights designed to reduce the need for electricity as part of the company’s overall goal of energy efficiency.

The company has not been immune to the recession, reporting a 2008 fourth quarter loss of $29 million, a revenue decline of 6.1 percent to $111.1 million and a comparable stores sales decline of 9.9 percent.

The company said it is moving forward with expansion plans cautiously and could open as many as 12 to 15 within the next few years, based on the economy.

West Marine operates 343 stores mostly in the United States.

--Compiled by Wendy Geister

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Outdoor financials: Analyst lowers estimates on Deckers, plus Quiksilver, West Marine, Forzani

Analyst lowers estimates on Deckers Susquehanna analyst Christopher Svezia lowered his share price target and 2009 earnings estimates on Deckers Outdoor Corp. (Nasdaq: DECK), parent of Teva, Ugg and Simple, amidst the current weak retail environment. In a client note, he wrote ...read more

Outdoor financials: Deckers Outdoor stock falls as market drops, plus West Marine, Wolverine

Deckers Outdoor stock falls as market drops Shares of Deckers Outdoor (Nasdaq: DECK) fell on July 11, as the broader market sank, even after the company said it signed a deal to distribute its Ugg brand in China. The company said it entered into a joint venture with Stella ...read more

Outdoor financials: Columbia Q3 profit falls despite Mountain Hardwear's 19-percent sales boost, plus Deckers, LaCrosse, Hanesbrands, West Marine

Columbia Sportswear Q3 profit falls despite Mountain Hardwear's 19-percent sales boost Columbia Sportswear (Nasdaq: COLM), parent of the Columbia, Mountain Hardwear, Sorel and Montrail brands, said its third-quarter profit fell 7 percent, hurt by lower demand amid a difficult ...read more

Outdoor financials: Deckers Outdoor chairman sells shares, plus Jarden, Wolverine, West Marine

Deckers Outdoor chairman sells sharesDoug Otto, the chairman of Deckers Outdoor Corp. (Nasdaq: DECK), sold 2,153 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing. In a Form 4 filed with the SEC, Otto reported he ...read more

Outdoor financials: Jarden shares preliminary Q1 profit estimates, plus West Marine, Deckers, Timberland, Wolverine, Amer Sports

Jarden shares preliminary Q1 profit estimates Jarden (NYSE: JAH) released preliminary first-quarter results, and its adjusted profit for the quarter is expected to beat analysts' expectations. Jarden's outdoor brands portfolio includes Coleman, K2 and Marmot, among others. The ...read more

Outdoor financials: Johnson Outdoors acquires two brands for marine electronics division, plus Deckers, Wolverine, West Marine, VF

Johnson Outdoors acquires two brands for marine electronics divisionJohnson Outdoors (Nasdaq:JOUT) is expanding its portfolio, buying Cannon downriggers and Bottomline fishfinders from Computrol and integrating them into its marine electronics business unit. Computrol is a wholly ...read more

Outdoor financials: Deckers expects to exceed 4Q guidance, plus adidas-Salomon, West Marine

Deckers expects to exceed 4Q guidanceWord out of Goleta, Calif., is that Deckers Outdoor Corp. (NasdaqNM: DECK) now expects fourth-quarter sales and earnings to exceed the high-end of prior guidance. It previously forecasted that quarterly income would range between 47 cents and ...read more

Outdoor financials: Jump in Deckers' Q4 earnings trounce analyst forecasts, plus West Marine, Exel Inc. shows dramatic losses, Liz Claiborne/Prana, VF, Jarden, Outdoor Channel, Amer Sports, Cabela's

Jump in Deckers' Q4 earnings trounce analyst forecastsDeckers Outdoor (Nasdaq: DECK), parent of Teva, Ugg and Simple, said its fourth-quarter profit rose 95 percent -- significantly beating analyst expectations -- as sales rose and margins widened. Quarterly earnings increased to ...read more

Outdoor financials: Deckers’ Q3 earnings boosted by Ugg, Teva sales, plus Amer Sports, Jarden, West Marine, Hanesbrands

Deckers’ Q3 earnings boosted by Ugg, Teva sales Double-digit percentage increases in Ugg and Teva sales boosted Deckers Outdoor (Nasdaq: DECK) net sales nearly 22 percent for the third quarter. For the quarter ended Sept. 30, Deckers' sales rose to $277.9 million from $228.4 ...read more