If Uggs fall out of fashion then DECK annual revenues could drop by 50% or more very quickly.
And the costs of marking down excess nventory could easily wipe ourt DECK's cash reserves.
Teva and other smaller Deckers brands are irrelevant to the company's bottom line, so DECK stock will go the way of Ugg.
In hindsight Deckers management , this year, should have been less aggressive buying Uggs inventory.
And in recent years deckers management should have been building up the company's TEVA and SIMPLE brands. Instead, management paide way too much for Sanuk brand. There was no reason to do that because Deckers owned Simple brand, which is a better name than Sanuk anyway.
Another Deckers management mistake wa the venture into retail store fronts, which is too expensive and not necessary.
Look at the feet in the street. They'er falling. Most of the one's you do see are on people who just want to wear them out to get their money's worth. Inventory levels tell you they ain't being replaced.