Guidance has proven to be more important to the market than earnings for Deckers Outdoor (NYSE:DECK) today, as the company reported good Q4 results, but surprised everyone by forecasting a loss for the upcoming Q1. The company has put the blame for the coming loss on the cost of opening new stores and increased marketing, but the market reacted poorly to the news.
In this segment of Friday's Investor Beat, host Chris Hill and Motley Fool analyst Ron Gross discuss the stock. Ron notes that the business is doing well, but despite today's pullback, he still sees it as pricey. Also, Ron is concerned that the company still relies heavily on the trendy UGG brand footwear, and isn't interested in buying Deckers today.
Chris Hill has no position in any stocks mentioned. Ron Gross has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.