1. Sheepskin costs up 80% from 2010-2012. This issue has now been tackled and has recovered from sheepskin actually now being down 11% in 2013, and another 10% for 2014...so we will recoup that extra 20% back. Plus, UGG Pure being integrated more and more, 25% for this coming 2014 full year and management calling for a forecast of mid-double digit profit margins which might be higher as a result of lower sheepskin costs for 2 years now,.
2. Warm weather for 2 consecutive years. The warmer weather plus the increase in sheepskin just double body slammed the company. Now we have one of the coldest winters we have seen in years, 3 degrees in chicago as I write this. Uggs are exploding off the shelves as this is our weather.
3. Management has bought back shares and had 79.3M available this quarter to purchase shares, which they almost no doubtedly did or are doing as I write this.
Bottom line, as Angel has stated, this is a stronger company than a few years ago and what doesn;t kill you makes you stronger. To infinity and beyond.
Government shutdown. Some of the UGG you see women wear are probably 1-3 years old. Women want base layers, jackets, gloves, and hats too. I see a lot of women with Apple products and that stock is down over $200 since hitting all time high.