Ugg aims for a cosy comeback
The boot brand is trying to escape the winter blues by pushing sales in summer
Think of Ugg. You’re thinking of a sheepskin boot, aren’t you? The stubby brown kind that may be uglybut too cosy to resist when the temperature drops?
After a few seasons of disappointing sales, Ugg is trying to rejuvenate itself by poking into the hotter months.
Last winter was a painful one for Ugg, reporting a 5.3-per-cent dip in sales for the quarter. In February, its parent company announced a plan for store closures and job cuts. Executives blamed the struggles on a warmer-than-normal winter.
Performance in Ugg’s sneakers and sandals categories were up a combined 20 per cent year over year, executives said on a conference call last week. David Powers, chief executive officer of Ugg’s parent, Deckers Outdoor Corp., said its spring and summer collection had fared particularly well this year. Net sales at Ugg rose 24.9 per cent for the quarter.
“This performance gives us confidence that our focus on developing compelling spring and summer product is resonating with our consumers,” Powers said. He singled out two sneaker styles as particularly encouraging, and they look little like the squat boots Ugg is known for. One, the Tye, is a simple perforated leather lace-up; the Sammyis a lightweight knit slip-on with foam inside.
Past attempts at pushing beyond the boots have had mixed results and some have been downright bizarre. In 2011, Ugg started selling a fashion line dubbed Ugg Collection, which included ankle boots and wedges made in Italy. Last fall, it released a freaky hybrid of its shearling boot and its sister brand Teva’s sandals, with calf-high, wool-lined sides and an open toe.
An activist investor criticized Deck- ers management in a letter in June, calling for a sale of the company. Marcato Capital Management said it would seek to upend the entire board of directors if changes aren’t made due to Deckers’s “chronic underperformance,” according to a copy of the letter reviewed by Bloomberg.
Winter-reliant apparel companies have long tried to escape the cold — but once a label is known for bundling people up, breaking away from that can be a challenge. Over the past decade, down parka maker Canada Goose has tried expanding into other seasons several times, but none of its efforts has stuck. Now, it’s pushing shell jackets that protect against rain and wind, not arctic chill.
Ugg, in an effort to turn things around during the wintertime, has also already revamped its classic boot, the product that makes up the largest chunk of its total sales. It released a slimmer version of the boot before coming up with the Classic II, a version of the original Ugg that’s also water- and stain-resistant.