ugg slippers mens sale Struggling Ugg boots fails to connect even on Tom Brady ‘Hail Mary’
When New England Patriots quarterback Tom Brady began pitching men on Uggs last year, it was an attempt by parent Deckers Outdoor to prolong growth of a brand that been popular with women and accounted for more than 80 percent of Deckers revenue.
Brady pitch hasn worked. Neither have sparkly Uggs nor animal print Uggs. Sales are sliding, investors are fleeing, and Deckers has become an object lesson in what happens when a company depends too heavily on a product at the whim of fashion.
Sam Poser, an analyst at Sterne, Agee Leach, forecasts Ugg sales will fall 1.8 percent this year after 22 plus percent gains in each of the previous three years. That has some investors and analysts asking if the brand will become the next Heelys or Crocs. The former sold millions of sneakers with wheels before kids lost interest; perforated resin Crocs clogs are now mostly walking hospital wards.
Deckers needs to do two things to avoid a similar fate, said retail consultant Walter Loeb: It must broaden Ugg beyond boots with more outerwear and belts and buy complementary brands such as a denim label.
they don do such things, it will be hari kari for the company, said Loeb. they don add to the momentum of their growth, they have problems sustaining the company. company told investors sales were hurt by trying to pass on higher sheepskin costs to consumers, as well as by unseasonably warm weather last winter.
The Ugg juggernaut began in 2000, when Oprah Winfrey included the boots in the annual listing of her favorite things. Before long, the footwear became a must have for many women. In 2011 shoppers snapped up more than $1 billion in Ugg products.
Then last year, women began switching from sheepskin looks to leather boots in riding, motorcycle, and combat styles.
Deckers committed a Branding 101 error, said Barbara Kahn, a marketing professor at University of Pennsylvania Wharton School. With both Ugg and Teva, the company focused too much on the shoes themselves and not enough on creating lifestyle brands that could become an umbrella for a range of goods.