Crocs (CROX) and Deckers Outdoor (DECK) both fell hard on Friday after issuing first-quarter earnings forecasts that disappointed the Street.
Crocs fell 9.2% after saying it expects to earn 24 to 26 cents per share, below analysts’� expectations for 30 cents.
Deckers dropped 12% after the company said its first quarter earnings would be down 50% from the first quarter of 2011, implying 25 cents of EPS. Analysts had been expecting 63 cents. Deckers said the cost of sheepskin used in Ugg boots will weigh on results in 2012.
“The Company expects full year diluted earnings per share to be approximately flat with 2011 levels due primarily to the increase in sheepskin costs in 2012 compared to 2011, which the Company projects to adversely impact profitability by approximately $1.40 per diluted share.”
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