Deckers rises on strong demand for Ugg boots
NEW YORK (AP) — Shares of Deckers Outdoor are rising Monday, with an analyst saying that demand seemed strong for the company's Ugg boots over the holiday weekend even though there were few promotions.
THE ANALYSIS: Camilo Lyon of Canaccord Genuity said in a client note that Nordstrom stores had Ugg boots prominently displayed over Thanksgiving weekend. The analyst said that the brand's classic styles seemed to attract the most attention but that its Swarovski Classic collection also appeared to be selling well. At Ugg stores, Lyon said that traffic was strong and consistent even though there weren't many styles on sale.
"We continue to believe the colder weather has helped spur Ugg sales, particularly as consumers replace older Uggs," the analyst wrote.
Jefferies' Randal Konik also believes the cold weather is helping Ugg sales, but said it is also benefiting from a strong assortment of new products and easy comparisons.
THE BACKGROUND: The holiday selling season is critical for retailers, as the combined months of November and December can account for up to 40 percent of retailers' annual revenue.
SHARE ACTION: The stock added $2.73, or 3.3 percent, to $85.37 in afternoon trading.