Influenced by the news, the share price of Deckers Group (NYSE: DECK) plunged 6.5% to $65.5 per share after the day, with a current market value of about $2.2 billion.
In February, Marcato Capital, a radical investor, joined Sequoia Capital, another shareholder, in an open letter to the group’s management after buying a 6% stake in Deckers, demanding a sell-off, otherwise a new group of directors would be nominated to replace the existing board.
Analysts at Susquehanna Financial Group said in a report that, given the lack of innovation, overproduction and poor performance of Ugg, the core brand of Deckers Group, it is difficult for strategic buyers to be willing to buy, and suggested that Deckers Group make major changes and strategic adjustments to its brands as soon as possible to restore profitability and growth.
In the Chinese market, UGG formally invited Chinese actress Yang Ying Angelababy as a brand spokesman at the end of August this year. This is also the first time that since the establishment of UGG in 1978, Chinese stars have been used as brand spokesmen. According to the data, UGG with annual sales of more than $1 billion worldwide now has more than 137 boutique retail and Aulai stores in first-tier cities such as New York, Paris, London, Tokyo and Beijing, and more than 1000 outlets worldwide.