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Deckers Outdoor stock falls as market drops
Shares of Deckers Outdoor (Nasdaq: DECK) fell on July 11, as the broader market sank, even after the company said it signed a deal to distribute its Ugg brand in China.
The company said it entered into a joint venture with Stella International Holdings Ltd. to open retail stores and distribute the shoes in China. Deckers said its total investment will be about $5 million.
Robert W. Baird & Co. analyst Mitch Kummetz, who rates the company “Outperform,” wrote in its client notes that Decker’s best bet for long-term growth is global development, and the agreement is one step toward that.
“In short, we like Deckers for not only its near-term prospects, namely the back-half outlook for Ugg, but also its long-term outlook, and this agreement supports that outlook,” Kummetz wrote.
However, investors shed the stock as the broader market tumbled amid investor concern about troubled government-sponsored mortgage finance companies Freddie Mac and Fannie Mae and record-high oil prices. The Dow Jones industrials fell below the 11,000 mark for the first time in two years before recovering somewhat, but was still down more than 56 points in afternoon trading. The Standard & Poor’s 500 was down 4 points.
Deckers shares fell $10.45, or 8.5 percent, to close at $112.85 on July 11. The stock has traded between $83.51 and $166.50 during the past 52 weeks.
West Marine Q2 same-store sales fall 7.8 percent
West Marine (Nasdaq:WMAR) said its same-store sales fell 7.8 percent during the second quarter as rising fuel prices and a weak economy continue to hurt customer traffic.
Total sales for the period ended June 28 fell 8.3 percent to $226.7 million.
Sales in the company’s stores fell 9.2 percent to $198.6 million, while wholesale sales slipped 4.1 percent to $12.8 million. Direct sales fell 5.1 percent to $14.3 million.
“Now that we are in the peak boating season, we continue to see softness throughout our U.S. markets,” said CEO Geoff Eisenberg, in a statement. “Fuel prices and the weak economy have absolutely affected boat usage, which in turn negatively impacts traffic to our stores and website.”
West Marine operates 369 stores in 38 states, Puerto Rico and Canada.
Wolverine declares dividend
Wolverine World Wide (NYSE: WWW), parent of Merrell, said its board declared a regular quarterly dividend of $0.11. The dividend is payable Nov. 3 to shareholders of record Oct. 1.
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