Deckers predicts Ugg rebound
NEW YORK (AP) Looks like Ugg maker Deckers expects shoppers to pull the sheepskin boots back on. The company's shares climbed in premarket trading Friday after it predicted better Ugg sales this year.
The company's profit tumbled 35 percent in 2012, and dropped 23 percent in the October December quarter, which contains the critical holiday shopping period. Still, the period beat analysts' pessimistic expectations, and Deckers said late on Thursday that sales trends have UGGS On Sale improved. It projected a 4 percent increase in Ugg sales this year after classic short sparkles ugg boots clearance the 1.5 percent decline in 2012.
Deckers Outdoor Corp. had been raising prices on Ugg boots to offset big increases in the cost of sheepskin and other raw materials. Those price increases hurt sales, and last fall the company decided to cut prices. Analysts and investors worried that consumers had finally gotten tired of the boots, and shares lost about half their value over the last 12 months.
Deckers' profit UGG Boots On Sale 70% Off prediction for uggs on sale this year was lower than analysts expected, but several said they believed the company was being conservative with its forecasts. Jefferies analyst Randal Konik said the guidance would likely be raised later in the ugg classic short sparkles blue for women year, as Deckers benefits from lower sheepskin costs, better sales trends and leaner inventories.
"The brand is far from dead," Konik said in a client note Friday. The analyst, who has a "Buy" rating on the shares, lifted his price target by $5 to $65.
NEW YORK (AP) Looks like Ugg maker Deckers expects shoppers to pull the sheepskin boots back on. The company's shares climbed in premarket trading Friday after it predicted better Ugg sales this year.
The company's profit tumbled 35 percent in 2012, and dropped 23 percent in the October December quarter, which contains the critical holiday shopping period. Still, the period beat analysts' pessimistic expectations, and Deckers said late on Thursday that sales trends have UGGS On Sale improved. It projected a 4 percent increase in Ugg sales this year after classic short sparkles ugg boots clearance the 1.5 percent decline in 2012.
Deckers Outdoor Corp. had been raising prices on Ugg boots to offset big increases in the cost of sheepskin and other raw materials. Those price increases hurt sales, and last fall the company decided to cut prices. Analysts and investors worried that consumers had finally gotten tired of the boots, and shares lost about half their value over the last 12 months.
Deckers' profit UGG Boots On Sale 70% Off prediction for uggs on sale this year was lower than analysts expected, but several said they believed the company was being conservative with its forecasts. Jefferies analyst Randal Konik said the guidance would likely be raised later in the ugg classic short sparkles blue for women year, as Deckers benefits from lower sheepskin costs, better sales trends and leaner inventories.
"The brand is far from dead," Konik said in a client note Friday. The analyst, who has a "Buy" rating on the shares, lifted his price target by $5 to $65.