Close

Not a member yet? Register now and get started.

lock and key

Sign in to your account.

Account Login

Forgot your password?

Deckers Idea Proposal

Deckers Idea Proposal
 

Research Question: Did back-to-school and fall sales of Deckers’ UGG shearling and non-shearling boots outperform last year for retailers and distributors?

Report Available: Dec. 16, 2015

 

Blueshift’s initial research shows Deckers has a tall order to fill in achieving its predicted 11% sales growth in its Q3. Brick and mortar apparel retailers have been suffering the most in an overall soft retail market, suggesting that branded apparel sales were struggling as well. DECK believes its new UGG Slim line will be the company’s saving grace, but we have yet to see any uptick of interest in the brand.  

 

Observations

  1. Blueshift’s Oct. 9 DECK follow-up report found non-classic UGGs were showing weakness despite making up a higher percentage of displayed merchandise at retailers. Nine of 13 sources reported steady or decreasing UGG sales. Our Sept. 9 DECK report showed UGG distributors and suppliers doubtful that DECK would be able to revive its Classic UGG or garner interest in its new UGG products.
  2. Overall retail sales have been soft this fall, and many brick and mortar apparel retailers, including M, JWN, and JCP, fell short of expectations in their most recent quarters. Warm weather was often cited as an excuse, but analysts also blamed consumers’ shift to online shopping, increased deal seeking behavior, and preference to spend more on big ticket items like housing and vehicles in place of apparel and shoes.
  3. DECK posted higher than expected results in its FY Q2, surprising some investors who were expecting weakness during its slowest time of year. UGG salesincreased 0.9%for the quarter. The company’s guidance predicted an 11% revenue increase in its Q3 and 18% increase in Q4.
  4. DECK recently launched its UGG Slim collection in hopesofattracting women who have historically avoided UGG due to its bulky and clunky styling. The line was styled by fashion designer Rachel Zoeand has showed up on Oprah’s “favorite things” list. DECK believes its future lies in more rugged weather and casual shoes than its sheepskin style boots. Recent footwear trends show an increased interest in block heeled boots, including knee high, lace up, and ankle styles.

 

Will interest in UGG boots continue to wane? How were fall and back-to-school sales? What does the run-up to the holidays look like for UGG? Will the new UGG Slim line revitalize the brand? To gain insight into DECK, Blueshift will gather data and issue a market research report from independent sources in the following areas: UGG distributors and Retail personnel.

 

Companies: Deckers Outdoor (DECK), Wolverine World Wide (WWW), V.F. Corporation (VFC), Columbia Sportswear (COLM), Macy’s (M), Nordstrom (JWN)