UPDATE: Sterne Agee CRT Downgrades Deckers Outdoor (DECK) to Underperform

Sterne Agee CRT downgraded Deckers Outdoor (NASDAQ: DECK) from Neutral to Underperform with a price target of $42. The change follows disappointing Q3 results and guidance. Analyst Sam Poser doesn't think investors should own the stock.

"DECK is changing its reporting segments from 4 to 2, and is no longer providing supplemental commentary. The aforementioned actions demonstrate an unconscionable lack of transparency," said Poser.

"UGG inventory increased 31.8% at the end of 3Q16 compared to a sales increase of 1%. DECK dramatically cut 4Q16 EPS & revenue guidance. Shipments for fall '16 will likely disappoint relative to the order backlog that will be reported on the 4Q16 earnings call. Many retailers are likely telling DECK what it wants to hear in order to get the appropriate help with current margin and inventory problems, which occurred as a result of the warm winter and MAP reduction of Classic boots," added the analsyt.

For an analyst ratings summary and ratings history on Deckers Outdoor click here. For more ratings news on Deckers Outdoor click here.

Shares of Deckers Outdoor closed at $79.80 yesterday.

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