Faruqi & Faruqi, LLP Encourages Investors Who Suffered Substantial Losses Investing In Deckers Outdoor Corporation To Contact The Firm
NEW YORK, June 12, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Deckers Outdoor Corporation ("Deckers" or the "Company") (NASDAQ: DECK).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company was unable to mitigate the effects of dramatically increasing prices for sheepskin; (2) the Company was experiencing a substantial reduction in demand due to the unusually warm weather; (3) Deckers' aggressive expansion resulted in the over-supply of the Company's UGG brand; (4) the Company's inventory levels for its UGG brand were increasing rapidly, causing increased mark-downs and close-outs, adversely affecting revenues; and (5) as a result of the foregoing, the Company's gross margin was negatively impacted.
On February 23, 2012, the Company announced its full-year and fourth quarter 2012 financial results, reporting better-than-expected fourth quarter results, but also reporting that inventory levels had increased 100%, and that it "expects full-year diluted EPS to be approximately flat with 2011 levels." As a result, the price of Deckers common stock dropped $12.49 per share to close at $77.72 per share. Then on April 26, 2012, after the market closed, the Company announced that it had missed its second quarter 2012 earnings targets and lowered its full-year 2012 guidance, projecting a decrease in 2012 diluted EPS of between 9% and 10%, compared to previous guidance for diluted EPS to be flat year-over-year. On this news, Deckers common stock dropped again, falling $17.63 per share to close at $51.83 per share on April 27, 2012, a one-day decline of more than 25%, on volume of more than 14 million shares traded.
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If you purchased Deckers securities between October 27, 2011 and April 26, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/DECK. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com, firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Deckers' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde, Esq.
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP