While we have always been a fan of the Ugg boots craze, it seems that the brand are planning tough times ahead following a year of tough sales climate that saw owners Deckers Brands record a dip in sales of 5.3%.
With the line reportedly accounting for as much as 80% of the profits that parent company Deckers Brands reported, it seems that unlike some of their rivals they are having to take a look at “strategic alternatives” that they can explore to make Ugg boots more appealing in the current market trend.
The decline in popularity seems to be more due to the fact that the brand have struggled to continue to produce trend relevant styles due to the nature of the bulky boots structure, a far cry away from where the company found themselves a few years back after stores were struggling to keep their lines in stock.
Although the decline in sales came to light in their third quarter last year, it seems that it would be more relevant to say that they have struggled to captivate the market since back in 2011 and with increased competition that were producing similar style boots pricing them out of the market, the brand never really gained traction again, instead continuing on a ‘lane crossing’ journey.
With analysts claiming that their lack of forward movement within their style creation, Ugg “diluted the brand” and that is something that many designer brands have trialled in the past, without being able to recover from their decision.
According to reports recently, the decline in sales and profit have lead investors to call for Deckers Brands to consider the future of the company and come up with a plan to either recover those losses or consider selling the brand as they look to get investment return out as high as possible.
The iconic boots became a big part of the tall boots marketplace, providing women, men and children alike with a style of boot that could be worn in a range of ways however it wasn’t until later that the brand added childrens and mens ranges to their offering as they looked to further their scope into the market.