Shares of Deckers Outdoors surged Friday after the maker of UGG boots said it expects sales of the fuzzy footwear to rebound this year.
Deckers (DECK) shares were up 14% in afternoon trading.
The California-based company said late Thursday that it expects sales of its Australian-style sheepskin boots to rise 4% this year.
That would be a significant turnaround from last year, when sales of the UGG line fell 1.5% to $1.18 billion.
Deckers has been struggling with waning demand for its once-ubiquitous boot, and some users on StockTwits said the rally Friday was due to traders unwinding short positions.
Deckers said it expects to report a loss of 12 cents per share in the current quarter.
Chief Executive Angel Martinez said Deckers had a "very challenging year," but stressed that the company has gained "valuable insights."
He said Deckers has taken steps to reduce its exposure to "sheepskin price fluctuations," and is working to expand the UGG brand to "broaden accessibility."
Deckers announced plans late last year to hire New England Patriots quarterback Tom Brady as spokes model for a new line of men's wear.
This was clearly a strategic mistake, according to one StockTwits trader, who's probably not a Patriots fan.
Baby, it's cold outside! Winter will be here (at least for those of us in the Northern Hemisphere) in a few weeks. So is it any surprise that shares of Deckers Outdoor (DECK), the maker of the popular (although not entirely aesthetically pleasing) fuzzy boot are rallying?
Shares of Deckers were up nearly 8% Monday, continuing a sharp move up from their 52-week low. The stock has gained nearly 45% since MOREPaul R. La Monica - Dec 3, 2012 12:57 PM ET
Not a member yet?Sign up now for a free account