UGG turned in the transcripts somewhat “ugly”, and the parent company with it may have to be sold.
Due to lower-than-expected share prices in the past five years, UGG parent company Deckers Outdoor Corp. has recently been “stressed” by two radical investors.
Red Mountain Capital Partners LLC, which has a 3.3% stake, is now calling on the board to seek to sell Deckers. In Red Mountain’s view, there are buyers who take the opportunity to give management more opportunities to continue to run the independent business plan announced in February. The former is more reliable and benefits more.
Marcato Capital Management LP is also putting pressure on Deckers. In February, the investor who owns a 6% stake in Deckers asked Deckers to explore new development strategies.
Although Deckers CEO Dave Powers is still trying to convince people of the company’s potential for change, “We have made significant progress in streamlining the cost structure, optimizing the retail store network and realigning the brand,” he said in a statement on the 25th. “We still Continue to explore more opportunities for profit growth.”
But the reality is that even Deckers doesn’t have to have any receivers to sell, and the “culprit” is the once-ubiquitous sheepskin boots – UGG.
Speaking of UGG’s brand, the natural conditional reflection is snow boots.
The original fashion circle that looks slightly ugly and cumbersome is resistant. However, Deckers has a good marketing plan. They know that it is very difficult to go through the advertising route or to discuss the fashion circle. Therefore, try to take the lead with the star “top down”.
UGG became a gift of “with ulterior motives” and was sent to the stars who were frequently photographed by paparazzi. This will cause people’s curiosity: This shoe is a bit ugly, what kind of “glamour” is there for her to wear on her feet?
It is also undeniable that UGG has its advantages, such as warmth and comfort. Like Oprah, after he received the gift, he liked it. Not only did he buy a pair of gifts, but he also helped the publicity in the talk show. Gradually, the star circle spread through UGG’s “trend”, Leonardo and Cameron’s many stars joined in, and even Spielberg’s family also wore UGG to appear in public