The Buzz

All markets and investing news all the time

UGG maker predicts sales rebound

March 1, 2013: 12:58 PM ET

http://i2.cdn.turner.com/money/dam/assets/130301124038-ugg-sales-620xa.jpg

Shares of Deckers Outdoors surged Friday after the maker of UGG boots said it expects sales of the fuzzy footwear to rebound this year.

Deckers (DECK) shares were up 14% in afternoon trading.

The California-based company said late Thursday that it expects sales of its Australian-style sheepskin boots to rise 4% this year.

That would be a significant turnaround from last year, when sales of the UGG line fell 1.5% to $1.18 billion.

Deckers has been struggling with waning demand for its once-ubiquitous boot, and some users on StockTwits said the rally Friday was due to traders unwinding short positions.


TraderRL23
$DECK Short interest. Should be a fun day tmrw squeezing out all those shorts. http://stks.co/jN7b

Deckers said it expects to report a loss of 12 cents per share in the current quarter.

Chief Executive Angel Martinez said Deckers had a "very challenging year," but stressed that the company has gained "valuable insights."

He said Deckers has taken steps to reduce its exposure to "sheepskin price fluctuations," and is working to expand the UGG brand to "broaden accessibility."


trawut
when will $DECK be back on track? waiting for the sheep skin price to go down and let $DECK has high margin again.

Deckers announced plans late last year to hire New England Patriots quarterback Tom Brady as spokes model for a new line of men's wear.

This was clearly a strategic mistake, according to one StockTwits trader, who's probably not a Patriots fan.


danielmardorf
$DECK forecasting a loss next QTR. This is what happens when you hire Tom Brady as spokesman.

Meanwhile, Deckers shares were also boosted by upbeat reports from analysts at Goldman Sachs (GS) and Jefferies.


AJordan
@smarterthanyou
$DECK maintained neutral at $GS price target increased to $40... Still cautious but acknowledges potential turn around.

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Ben Rooney
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Does $S really deserve to be down 20% because it isn't buying $TMUS? Doesn't SoftBank put floor on the stock?
Powered by WordPress.com VIP.
Follow

Get every new post delivered to your Inbox.

Join 231 other followers