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Press release from Business Wire

Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Deckers Outdoor Corporation

Friday, June 01, 2012

Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Deckers Outdoor Corporation17:00 EDT Friday, June 01, 2012 SAN DIEGO (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/deckers/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Deckers Outdoor Corporation (“Deckers”) (NASDAQ:DECK) common stock during the period between October 27, 2011 and April 26, 2012 (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/deckers/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Deckers and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Deckers is a designer, producer, marketer, and brand manager of footwear, apparel and accessories. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements concerning the Company's financial condition and future business prospects. More specifically, defendants misrepresented and omitted material facts concerning demand for the Company's UGG brand, which is critical to its success. During the Class Period, the Company's expansion and extensive distribution created a unique circumstance: UGG supply met demand for the first time. As new product lines faltered and the Company continued raising prices on its “classic” UGG products, inventories swelled to extremely high levels, requiring the Company and its retailers to use previously unheard of mark-down and close-out pricing to move UGG products. As a result of defendants' false statements, which hid these adverse trends from the market, Deckers common stock traded at artificially inflated prices during the Class Period, reaching a high of $117.66 per share on October 28, 2011. 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 and lowered its full-year 2012 guidance, projecting a decrease in 2012 diluted EPS of 9%-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. According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company was not able to mitigate the effects of dramatically increasing prices for sheepskin; (b) the Company was seeing a decline in demand to a much larger extent than represented due to the unusually warm weather; (c) the Company's extensive expansion resulted in the over-supply of UGG products, which meant that the price increases for those products were ineffective; (d) the Company's inventory levels for its UGG brand were increasing rapidly, which led to the increased use of mark-downs and close-outs; (e) as a result of the foregoing, the Company's gross margin was negatively impacted; and (f) based on the above, defendants lacked a reasonable basis for their positive statements about the Company and its revenue outlook. Plaintiff seeks to recover damages on behalf of all purchasers of Deckers common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $1.5 trillion. The firm has obtained the largest recoveries in history in six of the eight categories of shareholder class action settlements and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information. Robbins Geller Rudman & Dowd LLPDarren Robbins800/449-4900 or 619/231-1058djr@rgrdlaw.com