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Deckers Outdoor Corp. Message Board

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  • chkpfbeliever chkpfbeliever Jan 18, 2013 3:11 PM Flag

    China Retail data & coldest winter in years

    that sales increase could be from a lower base. I know that DECK is sold at 3X higher price in China due to import taxes (even though they are made there). I've friends in the US that are buying Uggs here in the US and shipping there because of the discounts. Chinese can figure their way to getting cheaper goods overseas.

    They need to figure out their growth strategy without constantly opening flagship stores everywhere. Running Brick and Mortar stores are pricely. Even Louis Vuitton is starting to feel the pain of having too many stores. When the real estate market returns, increased costs of rent will kill their margins.

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    • I don't think they'll end up like CVS or Walgreens, where you find one on every corner. They are strategically opening stores, following a plan. They also have one of the fastest ROI in doing so and have one of the highest dollars per square foot of return on that retail space. This isn't done by accident or coincidence. And when real estate comes back these stores will do even better. But you factored that into your decision making also I'm sure.

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