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Sales increased 2% despite UGG wholesale sales being down approximately 11%. Retail (+37%) and eCommerce (+31%) offset the weakness in wholesale. I am sensing a secular channel shift taking place here. The question zappos uggs sale
is: "are retailers getting upset about UGG store openings and cutting wholesale orders or is UGG getting more stringent about who uggs sale classic short chocolate
can sell their product as they suggested on the quarterly conference call. [Probably a little of both. Coasting through a couple of West Coast Nordstroms (NYSE:JWN) recently revealed a pretty limited number of UGG SKUs being offered.] Deckers opened 30 stores in 2012 and expects to open another 30 in 2013. Same store sales were down 3.4% in Q4 which suggests demand is not overwhelmingly healthy but an improvement from down 13% in Q3. Wholesale backlog (down 17%) and early Q1 sales trends don't appear great according to management comments on their call.
Gross margins were down as expected to 46.3% (versus 51% last year) and are expected to stay in that range in 2013 baby girl uggs on sale
per management's guidance (46.5%). Recall that sheepskin prices moderated in the second half of last year but much of the purchasing for 2012 was committed to earlier, so the benefit of lower sheepskin prices is expected to occur in 2013. A price reduction in the uggs sale journeys
second half of 2012 makes it reasonable for margins to be somewhat flat (and may give room for management to discount product that still is not selling beat its guidance). Another possible benefit to margins and the inspiration for this note's title is an innovation called UGG Pure which is a wool substitute for sheepskin which is supposedly softer and more consistent than shearling and uggs sale for black friday presumably less costly for Deckers (and for sheep who presumably get to keep their skin!)
SG appears to be ramping significantly into 2013 as implied by management guidance of only a 12.5% operating margin. This suggests the company may be marketing more heavily as well as reflects the aggressive opening of retail stores which produce higher gross margins but have higher sales and operating expenses than wholesale.
A few other observations worth mentioning:
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