The market has a "duty" to "perfectly" or efficiently price in a companys current and future(near future) results. When it does is anybodys guess, but if one just takes a look at Lululemon, one will see a company that has lost 40% of its stock value. It was 11.5B just a year ago and today is 6.63B. The company hasn't lost 40% of its earnings. So what happened? The market is EFFICIENTLY pricing in a worst case scenario that slower to flat growth implies as well as increase of competetion. Lululemon no longer deserves a pe of 40+(never really did) but the market preteneded it did for as long as it could...before reality came in and said company can really only grow so much and competetion has arrived.
With Deckers, market CANNOT pretend the FAD arguement holds water anymore. The market cannot ignore managements projections of another increase of 11% in UGG revenues and therefore record revenues next year AGAIN nor can the market ignore the integration of UGG PURE as well as the potential to buy back 79M worth of shares, plus 6.7M shares on the wrong side of the tape.