is correct in the long term.... as previously indicated, deck over the long term will be fine and is a good investment.... short term with the upcoming loss not so much... admittedly however i did not expect this short term bounce and short term at least i do not believe this will be sustained given the upcoming loss... i have positioned myself however in a win win situation.... so yes i will cheer any rise but i will not be surprised if deck dips back down to the low 50s
Again, it's not all about sheepskin. Let's review the facts. From 2010 to 2012:
-Revenues increased by 41.3%.
-Cost of Goods Sold increased by 57%.
-Gross Profit increased by 25.7%.
-Operating/SGA Expenses increased by 75.4%.
-Operating Income decreased by 24.9%.
So really, it's more about operating expenses than sheepskin. With Deckers announcing they will be targeting new stores with operating margins about 1000 basis points lower, get used to a lower margin business. You are not going to see this company as a profit monster anytime soon.