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Deckers Outdoor Corp. Message Board

  • frog3648 frog3648 Jul 2, 2013 12:27 PM Flag

    Inventory concern by seeking alpha today

    While under normal circumstances I would put some weight on inventory levels going up, I don't think an important issue was looked at. Decker is increasing online sales, and is opening a number of new stores. You need inventory to stock those stores. Decker has been paying off these stores in just about a year and you can't do that if you don't have inventory to sell. The absolute last thing you want to happen with your customer base is for them to go to a store and not be able to get what they want. After 2015 with the new Deck Pure line coming into play and better inventory control, inventory levels should be coming down to a more manageable number. Until then I don't see this as a concern.

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    • Management has stated that they believe inventory will be in line by the end of the year.

      Don't put too much credence into articles on seeking alpha. There is no track record posted as in baseball where you see at what percentage a person gets on base. The only thing you can trust is your own due diligence and numbers.

      Bottm line, this company was written off as a FAD or whatever. It is going on 9 years straight of popularity. Last winter, I could not believe how popular the product was in the same year the stock was tradingat 5 year lows.

      There is a reason we have already rebounded 90% since the lows set 8 months ago. This stock is in the bargain aisle.

      No other company is trading this cheaply for such cash flow. 266M in debt in october, with 60M cash. now just 10M in debt, with 65M in cash. 5M less shares. Company forecasting double digit profit margins.
      Insiders holding tight. Goldman Sachs invested. Too many positives. I think we are at 3.2B valuation by the end of this year.


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