Deckers shares soar as analyst says frigid weather will drive Ugg sales
Ugg brand sheepskin boots by Goleta-based Deckers Outdoor Corp. (courtesy photo)
Shares of Deckers Outdoor Corp. jumped 2.6 percent to close at $87.99 on Jan. 6 after one analyst said he expects chillier winter weather to boost sales of the company’s signature Ugg boots.
Sterne Agee analyst Sam Poser sent shares of Deckers to their highest level in almost two years when he said in a note to clients that he expects holiday Ugg sales to have jumped more than 20 percent in December. The fourth quarter is typically Deckers’ strongest as sales are boosted by winter weather and holiday gift giving. Poser has a “buy” rating on the stock.
In a mid-December interview, Deckers CEO Angel Martinez told the Business Times the company was expecting a stellar sales season. “The brand is top-of-mind when the weather gets cold for people out on the East [Coast],” he said. “We’ve been pretty satisfied [with holiday sales] so far.”
Deckers has said it expects 2013 sales to be up 8 percent and diluted earnings per share to be up 10 percent compared to 2012, boosted by higher holiday sales of Ugg and revenue from new stores in Asia, where it is aggressively building out its direct-to-consumer retail infrastructure.
Poser noted that waterproof Ugg boots are doing “exceptionally well” with wet winter weather taking hold in much of the country. Ugg products including slippers have also performed well, he said.
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