July 31, 2014
NEW YORK (AP) - No love for Uggs: Shares of the sheepskin boots maker, Deckers Outdoor Corp., are tumbling Friday because consumers have turned away just before the start of the holiday shopping season. The company on Thursday slashed its outlook for the rest of the year after its third-quarter profit dropped 31 percent.
It's blaming two years of price increases for turning shoppers off Uggs, which have been perennial holiday best-sellers, and mild weather this year. In an effort to lure back shoppers, Deckers says it's going to roll back prices on some Uggs styles in the U.S. But some analysts are even more pessimistic than the company, and don't think colder weather this winter will drive up sales. Shares of Deckers, based in Goleta, Calif., are down 16 percent this morning.
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