Research Question: Is there a surplus of UGGs due to last year’s warm fall/winter and a possible waning in popularity this season?
Company: Deckers (DECK)
Blueshift’s initial research indicates possible red flags for UGG heading into the fall and winter seasons, while the company counters with an aggressive push to attract male customers.
- Blueshift’s April DECK report showed concerns for UGG sales leading into the fall/winter 2012, including two manufacturer sources who noted that client orders for fall/winter 2012 had fallen as much as 35%. Additionally, six of 11 retail sources said UGG sales decreased as much as 50% year to year, due in part to the unseasonably warm winter. Concerns are now whether this has led to a possible inventory surplus as the company hopes for a cold winter to clear excess inventory in 2013.
- UGG, which has lacked brand awareness with men, will be unveiling a new blend of television, digital, print, and outdoor ads this September targeted directly at male customers, in hopes of changing its perception of being a female-only brand.
- According to Deckers’ CEO, UGG experienced positive momentum during Nordstrom’s recent anniversary sale, which typically introduces fall/winter styles before advertised release dates, giving hope for on-trend designs and strong sales for the fall.
To gain insight on the fall and winter outlook for UGG, Blueshift will gather data and issue a market research report from sources in the following areas: retailers, supply chain, manufacturers, and customers.