Well, let me tell you. In the year where sheepskin prices were at their record highest and obviously for Deckers as a business expense, Deckers did 90M in cash.
2011- Cash was 263M, no debt.
2012- Cash was 110M, 33M debt but....220.7M was used to buyback stock and 61.6M was invested in the business.
So without Deckers buying back 12.2% of itself along with investing 61.6M in the business(headquarter, it infrastructure, etc.) , cash at the end of 2012 would have been 352.5M, no debt.
So 352.5(2012) - 263(2011) = 89.5M diollar increase on the balance sheet.
Why is this a good thing? Well, for one profit margins are expected to go up due to ugg pure.
How much are profit margins expected to go up? Well,management is looking at double digts a few years out as a result of UGG Pure technology which is already being implement in 110% of the product.
An added bonus? Sheepskin prices were down 11% YOY for 2013 compared to 2012, which should add more cash to our bottom line.
So theoretically, we could be looking at making more than 180M in cash just 3-5 years from now and the stock is NOT reflecting even close to that!
Booyah Jim cramer, BOOYAH!
What is 1.98B/180M? 9% return one one's money.
Compared to the 2.71% return in the market.
Find me something cheaper that at this price will offer you a better return on your money.
10% of the product so far not 110%.