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Press release from Business Wire

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Deckers Outdoor Corporation

Monday, June 04, 2012

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Deckers Outdoor Corporation16:57 EDT Monday, June 04, 2012 WILMINGTON, Del. (Business Wire) -- Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of Deckers Outdoor Corporation (“Deckers” or the “Company”) (NASDAQ GS: DECK) between October 27, 2011 and April 26, 2012, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the “Complaint”). If you purchased shares of Deckers during the Class Period, or purchased shares prior to the Class Period and still hold Deckers stock, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://www.rigrodskylong.com/investigations/deckers-outdoor-corporation-deck. Deckers, a Delaware corporation headquartered in Goleta, California, designs and markets innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. The Company markets its products primarily under three proprietary brands: UGG®, Teva®, and Sanuk®. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that defendants misrepresented and omitted material facts concerning the demand for its UGG brand. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period. According to the Complaint, on February 23, 2012, the Company issued a press release which announced its financial results for the full-year and fourth quarter of 2011. The release touted “record” fiscal and fourth quarter financial results for the Company. Despite better-than-expected results, the Company announced that inventory levels had increased 100% and that it expected full-year diluted EPS for 2012 to be “approximately flat” with 2011 levels. Following the issuance of this release, the Company's stock price dropped $12.49 per share, closing at $77.72 on February 24, 2012. On April 26, 2012, the Company announced its financial results for the first quarter of 2012. Along with disclosing that it missed its projected earnings for that quarter, the Company announced that it was lowering its full-year 2012 guidance. Specifically, the Company now expected full-year diluted EPS for 2012 to decrease by 9-10% as compared to its previous assertion of remaining “approximately flat” with 2011 levels. On this news, shares of Deckers common stock dropped more than 25%, closing at $51.83 per share on April 27, 2012 from $69.46 the previous day, on heavy trading volume of over 14 million shares. The Complaint also alleges that these 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, especially its classic products, meeting and/or exceeding demand, which meant that the Company's 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 as the Company experienced declining same store sales and its new retail stores also suffered; and (e) as a result of the foregoing, the Company's gross margin was negatively impacted. If you wish to serve as lead plaintiff, you must move the Court no later than July 31, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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. While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome. Rigrodsky & Long, P.A.Timothy J. MacFall, EsquirePeter Allocco888-969-4242516-683-3516Fax: 302-654-9430info@rigrodskylong.comhttp://www.rigrodskylong.com