Deckers Posts Gains; Stock Falls on Outlook

Deckers Outdoor Corp., a Goleta, Calif.-based shoe designer, reported a 40% jump in third-quarter profit but pegged fourth-quarter and 2006 earnings below Wall Street’s expectations, sending its shares down nearly 18% in after-hours trading.

For the fourth quarter, Deckers said earnings would be 60 cents to 64 cents a share; analysts were expecting 83 cents. For 2006, the maker of Teva sandals and Ugg boots forecast earnings of $2 to $2.15 a share, lower than Wall Street’s estimate $2.58.

Deckers said it decided to reinvest in its business next year to better position the company for the long term.

In the just-completed third quarter, profit increased to $8.2 million, or 63 cents a share, from $5.8 million, or 46 cents, a year earlier. Sales rose 24% to $69.2 million. Analysts had forecast earnings of 59 cents a share on sales of $69.5 million. Deckers stock tumbled $3.77 to $17.47 in after-hours trading.