Deckers Outdoor Corp(NASDAQ:DECK), which makes the Uggs brand of sheepskin boots, on Thursday reported a 31 percent fall in profit for the September quarter, while it also reduced its outlook for the current quarter.
Net income for the three months ended Sept. 30 totalled $43.1 million, or $1.18 per share. That compares with $62.3 million, or $1.59 per share, last year. Analysts expected net income of $1.05 per share.
Revenue fell 9 percent to $376.4 million from $414.4 million last year. Analysts expected $412.1 million.
Decker's smaller brands performed better than Uggs. The unusually hot summer this year and drought-like conditions in many parts of the United States, led to a weakening in the demand for Uggs, which is now planning to roll back prices on some of its classic styles.
Revenue from Uggs, Deckers' largest brand, fell 12 percent to $332.8 million during the quarter.
Revenue from Teva sports sandals rose 22 percent to $17.9 million. Sanuk casual shoes revenue rose 18 percent to $18.3 million.
U.S. revenue rose 6 percent to $242.2 million. But that was offset by a 14 percent drop to $134.2 million internationally.
For the crucial holiday quarter, which is currently on, the company said that its earnings will fall 14 percent, which translates into a profit of $2.73 per share. Previously, they expected a 22 percent increase. Analysts expect $3.40 per share.
The company now expects fourth-quarter revenue will rise 6 percent, implying revenue of $640 million, from prior guidance of a 19 percent rise. Analysts expect $682.1 million.
Shares of the company slumped 15.50% in the pre-open session.