Footwear group Deckers Outdoor Corporation has revised its sales and earnings guidance for the second quarter and full 2005 financial year, due to unfavourable weather affecting the Teva business.

Deckers now expects net sales of $38 million-$39m for the second quarter ended 30 June 2005, and diluted earnings per share of between $0.15 and $0.18, compared to its previous guidance of net sales $40m-$41m and earnings per diluted share between $0.28 and $0.30.
 
For the financial year ended 31 December 2005, the company expects net sales of $248m-$258m and earnings per diluted share of between $2.32 and $2.43, compared to its previous guidance of net sales of $250m-$260m and earnings per diluted share between $2.45 and $2.55.

Douglas Otto, chairman of Deckers Outdoor, said: "our Teva business has been affected by unseasonably cold weather and this trend continues, negatively impacting our forecast for the second quarter.

"With the approaching end of the selling season for sandals, we are discounting selected Teva styles, which will adversely affect our projected gross margin.

"At the same time, we remain very comfortable with our outlook for the second half of the year as demand for UGG continues to be strong, orders are booked and the response to our new Fall UGG product line has been very positive across the board."

Deckers Outdoor Corporation builds niche products into global lifestyle brands by designing and marketing innovative, functional and fashion-oriented footwear, developed for both high performance outdoor activities and everyday casual lifestyle use. The company's products are offered under the Teva, Simple and UGG brand names.