how are you not scared of the fire sales going on (50-75%) off UGG on a large # of sites right now. Seems like inventories until December were inflated that they are trying to run down. Would be very concerned about the hit to margins going forward. Any intelligent opinions anyone?
Unfortunately for the consumers the fire sales are not on the popular items but the new items that were introduced and never caught on. The "Bailey"s and such are still selling at list price and that is what the consumer wants.
It's all about product line introduction and retirement.
What is going to happen is that the excess inventory will get cleared; albeit at a discount;
however look forward--- The wholesale buyers will want to buy less of the inventory because of the 'warm winter' ; to counter that UGG opens new stores and starts selling its own brand and KaPOWW there's huge demand for the products again that you can't get at department stores..
I tell you ---there will be lines at every DECK store! (just like AAPL)
First off the season is behind us. Yes, it is cold now, but the selling season is usually prior to the actually season necessary.
Even if what you are saying is correct, 50-60% off,, sring is coming in a month and a half. Spring training starts in a month. Deckers should just sit on inventory if they have it? C'mon, learn how business works. They had a lot of inventory because of the warm winter from 2011 and the higher pricing. It was a terrible combination. Get rid of the inventory and start fress going foward.
What is so hrrible? The stock already dropped 75% in anticipation of this, now it is PURE VALUE going foward. It has been discounted, hence no longer effective news.