March 19, 2007
Why DECK is a buy!
Some say their boot was just a fad, but this sheep skin boot is here to stay! We see their products everyday, women parade in these shoes rain or shine, snow or hail. They praise their comfort and their style. UGGS is the brang of our generation.
Deckers Outdoor Corporation engages in the design, production, and brand management of footwear for men, women, and children in the United States. Its products include slides, sport sandals, thongs, amphibious footwear, trail running shoes, hiking boots, rugged closed-toe footwear, sheepskin boots and slippers, and other casual footwear. The company provides its products under Teva, Simple, and UGC brand names.
The DECK management team has consistently beat earnings, they have overdelivered on their earnings projections for the past 5 quarters. Last week the company reported a 94% increase in earnings from the previous quarter.
Another aspect of the company that DECK has come to master is the art of inventory. The problem many shoemakers and retailers make is overbuying, DECK management has won a gold medal managin inventories effectively.
DECK is also growing their sales tremendously in Asia and Europe. Another part of the business that is growing exponentially is the UGGS men's division. Just last week my roomate purchased a pair of ugg slippers and I have to admit they are very comfortable.
Gross margin rose to 46.4% in the fourth quarter which is amazing for such a small company. They are very efficient.
DECK and UGGS are there to stay. They may be a fad, but one that will make us a lot of money.
Copyright © Eric Medina
Posted by eamed at March 19, 2007 01:26 AM