Deckers Outdoor (DECK) Falls as Early UGG Sales Appear Weak; Rare Sales Show Up
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Price: $793.48 -6.84%
Rating Summary:
24 Buy, 17 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
24 Buy, 17 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
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Deckers Outdoor (NASDAQ: DECK) is seeing some early weakness Monday after Sterne Agee analyst Sam Poser said UGG sales are off to a slow start to the season.
The analyst notes UGG Classics in basic colors appeared on a flash sale site for the first time, which he said "bodes poorly for fall sales."
"Beyondtherack.com apparently has broken the ice with a flash sale for this past weekend (September 15th & 16th) where, for the first time, we have seen Classic UGG styles, including the Classic Tall and Short, The Bailey Button, and the Triplet and other styles including the cold weather Adirondack boot on sale for 15% to 50% off regular prices," the analyst notes. "Basic colors and fashion colors were available in all styles."
Poser also said channel checks show early UGG sales are very disappointing. "It is clear to us that the UGG "fashion trend" has faded," he comments. "The question remains as to how much of the UGG business is weather related and how much is fashion related in the fall season."
He cautious, the health and growth opportunities for the UGG brand remain at risk, as well as DECK 2H12 guidance.
The firm maintained an Underperform rating and $38 price target.
For an analyst ratings summary and ratings history on Deckers Outdoor click here. For more ratings news on Deckers Outdoor click here.
Shares of Deckers Outdoor are down 3.2 percent to $47.35.
The analyst notes UGG Classics in basic colors appeared on a flash sale site for the first time, which he said "bodes poorly for fall sales."
"Beyondtherack.com apparently has broken the ice with a flash sale for this past weekend (September 15th & 16th) where, for the first time, we have seen Classic UGG styles, including the Classic Tall and Short, The Bailey Button, and the Triplet and other styles including the cold weather Adirondack boot on sale for 15% to 50% off regular prices," the analyst notes. "Basic colors and fashion colors were available in all styles."
Poser also said channel checks show early UGG sales are very disappointing. "It is clear to us that the UGG "fashion trend" has faded," he comments. "The question remains as to how much of the UGG business is weather related and how much is fashion related in the fall season."
He cautious, the health and growth opportunities for the UGG brand remain at risk, as well as DECK 2H12 guidance.
The firm maintained an Underperform rating and $38 price target.
For an analyst ratings summary and ratings history on Deckers Outdoor click here. For more ratings news on Deckers Outdoor click here.
Shares of Deckers Outdoor are down 3.2 percent to $47.35.
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