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Crocs (NASDAQ:CROX), the footwear company, stunned investors with a significant earnings warning. The company provided guidance well below previous EPS expectations of 40 cents a share. CROX now expects to earn 31 to 33 cents for the September quarter. Revenue is expected to range between $273 million and $275 million, below expectations of $280 million. Shares of CROX are giving up nearly 1/3 of its value as a result of these revelations.

So what do itchy finger traders do? They begin to attack shares of Deckers Outdoor (NYSE:DECK). Understand that the similarities between CROX and DECK end at footwear. CROX, for all intents and purposes, has one product, a rubberized sandal which is primarily used in warm weather. Sure it is trying to diversify to boots and sneakers but let's get serious, this is a one trick pony. DECK, on the other hand, is a far more diverse footwear company with seven brands transcending a variety of styles and weather conditions. I am a long-time owner of DECK stock, with a cost basis less than half of the current market price, even when factoring in today's several point decline.

DECK sells for 21 times trailing earnings and 17 times forward earnings. Earnings are expected to grow by 20% in 2011 and 21% in 2012. Earnings growth for DECK has come both from organic sources and acquisitions over the long term. I expect that despite the CROX revelations, DECK will continue to drive that long term growth of at least high teens to low twenties percentages.

Disclosure: At the time of this commentary, Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long DECK stock — although positions can change at any time.

Source: Don't Equate Deckers Outdoor With Crocs