user1010101

Deckers: Will Ugg Sales Be Up for Christmas?

I know that DECK is trading at a discount - I was simply stating that it was justified.

You obviously don't need to be told this but there is always a chance that those comps are overvalued. I look at the comps you provided and can further justify the discount:
(1) DECK doesn't really have a strong brand year round (mostly in the winter) compared to the comps you provided
(2) DECK is more exposed to the "fad" arguement than Nike, Skechers etc
(3) It other businesses (not UGG) have not done that well and were losing money for a long time. The amount of money put in to revive those other segments has not generated a very good return.

Deckers: Will Ugg Sales Be Up for Christmas?

Jeff, I think you have done a great job pationately outlining your analysis. However, there is no reason to believe that DECK should trade at a premium to any other retail company. I would agrue that the discount is fair given that it relies on 1 brand with little safety net from Teva.

Regardless, very compelling arguements - i hope you keep posting!