Deckers blames high skin prices and warm weather for “challenging year”
31/01/2013
Deckers chief operating officer, Zohar Ziv, recently told analysts that the winters in 2011 and 2012 were the warmest on record in key markets for the UGG brand such as the north-east of the US. “We get a lot sales from cold-climate areas such as the north-east,” he said. “But when it’s 18 degrees Celsius in New York City in December, people don’t want to wear or buy sheepskin boots so much.”
In addition to the warm weather, he said UGG had also experienced record high sheepskin prices in 2011 and 2012. “Prices for us went up by 40% in 2012,” Mr Ziv said, “and that was on top of a 30% rise in 2011.”
However, he said that prices had come down, by 11%, at the start of 2013.
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