I wonder if anyone else listened to the DECK presentation yesterday. I virtually never criticize DECK management, but I have to say that I found this and other recent presentations by CEO Angel Martinez and COO Tom George to be somewhat distressingly underwheming -- not because I believe there is nothing exciting to say about the company, but rather because both of them seemingly make no effort to display enthusiasm or to generate enthusiasm in their audience about the company's products or prospects. So it is not surprising that the stock price weakened yesterday and today after the presentation (though I realize the stock was due for a pullback after a week of gains).
I remember the days when Angel showed a lot of excitement at such events. But now he sounds much like a boring and pedantic professor in a business school seminar on marketing theory. It is difficult even to follow what he is saying. And Tom sounds like a mortician who is on the verge of falling asleep (maybe because he has had to listen to Angel's broken record about the evolution of omnichannel marketing, developing the in-store experience, and blah, blah, blah. And almost nothing about what they are selling!
I am posting these comments in hopes that someone at DECK might read them and let Angel and Tom know what I have said. These executives owe it to the shareholders to try to do a better job of communicating the company's strengths to potential investors. Come on boys, show a little life!!!
Ibyrite: I'm not sure what you are asking. I can only say that I do not have a clear sense of how DECK shoes are doing in the retail market -- which is why I posted my message about Amazon sales. (As I type, incidentally, DECK has three of the top fours bestsellers in Amazon shoes.)
You mention "consolidation," but I do not know whether you are referring to DECK or to the larger market. It seems to me that DECK's price has consolidated, and that good earnings and guidance this month could result in a major move up. But I wonder why Connie Richwain (president of UGG) is leaving the company. Was Angel unhappy with UGG's growth? Was she unhappy that she did not get the job of president of DECK (which went to someone newer in the company)? Does she know something that will hurt her position in the company? Or what? I am completely in the dark.
Thanks! I should have looked there myself. But, as I said, this is a strangely late earnings report. Normally they report on the third thursday following the end of a quarter.
I see that DECK has three of the six bestselling shoe styles in Amazon (for men, women, and children combined). Two are Sanuks, and one is a Teva.
Anyone else see any other evidence of sales?
Also, it's strange that earnings have not yet been given or even a date announced. I can't help but think that something newsworthy is coming.
Mrs. Shoe: What do you mean that HOKA "used to be great"? HOKA has only been alive two or three years. It is just barely off the ground. And its range of styles is just beginning to expand.
algo41: Glad to know you are still involved in DECK. Have you tried HOKAs? I myself am very happy with mine, which I wear both running and walking. You might want to consider buying a pair for walking. (Sorry about my spelling of "sneakers." My computer assumes I am trying to write in French, and often messes up my spelling. This happens only in message posts and other similar functions.)
Also, do you have any new stock ideas? I have been impressed with your past posts.
I also have heard (and read in reviews) that people with foot and knee problems are finding HOKAs extremely helpful not only as running shoes but as walking shoes and work shoes. And this fall they are introducing a hiking shoe. Athletic shoes ("speakers') are the largest-selling shoe style, and possible revenues here are huge.
The TEVA president was replaced about a year ago, and I see improvements already on various dimensions, including range of styles and promotion.
Here's the link: http://www.alexa.com/siteinfo/http%253A%252F%252Fwww.uggaustralia.com%252F
I'm surprised I could post it. I thought that Yahoo! does not allow links.
I just looked at a bunch of recent reviews of HOKA ONE ONE shoes in Zappos, and they are as positive as it is possible to imagine. They remind me a bit of the reviews of UGG boots when people were first discovering them about 2005. I agree that this brand seems likely to bring huge growth to DECK. So of course I think this is a very good time to buy the stock.
I would welcome any posts pertaining to the progress of this brand.
The Alexa website (a company that tracks web traffic), shows that traffic for UGG is way above last year's. Whereas UGG web traffic always falls steadily after its peak just before Christmas until it hits its summer low, this year it has climbed during the month of February and has still not begun to decline. Obviously this is a result of the cold weather. And it bodes well for earnings this quarter and for restocking orders in the fall.
Why are you so optimistic about Hoka? I am just curious to know what you know.
Also, you are surely right that people don't know that Hoka is a DECK brand. Not long ago I talked to a woman who was running in Hokas, and I asked her how she liked them. She was very enthusiastic, and said she wished it were possible to invest in the company, but unfortunately they don't have stock. Needless to say, I educated her.
Zohar Ziv, the outgoing COO, announced his retirement about a year ago. He agreed to continue as a consultant until a replacement could be found. He even participated in at least one conference call after his announcement. So a new COO has no negative significance. However, it is interesting that the new COO is a lawyer with a lot of merger and acquisitions experience. This could be a hint about how he will spend some of his time. DECK remains interested in acquiring more companies.