When sheepskin was rising, sure, there was reason to be scared. Our bottom line was getting killed, knockoffs were becoming attractive to people because Deckers really had no room to lower prices and make similar profit. We were held hostage.
But now management has taken the appropriate steps and come out with a product that should enhance sales due to lower price points while doubling our profit margins.
We are a few hundred days early, but better to be early than late.
The market is about to take a major dump starting soon. I predict Dow 12,500 to 13,000 by year end. That will translate to 30's to low 40's for DECK. Watch and see........and you should be a little scared.
No other company I know of is as setup as Deckers in the case where EVEN IF THERE IS NO GROWTH and revenues remian flar over the net 3 years(while the company opens 130 stores), UGG PURE provides a significant cushion going foward to the bottom line.
I'm not ignorant to pretend DEckers is immune to a market sell-off or a technical sell-off. We've seen plenty of those already.
But I'm not really going to pretend Deckers isn't going to grow when it is opening more stores(more than 100% its current) and will have the ability to offer more attractive prices for its bestsellers if need be due to the significant impact of UGG PURE without hurting the current bottom line.
It will enhance the bottom line, Insiders are not selling for a reason.