Deckers decides against pursuing sale
30/10/2017
The company launched the review in April and in recent months has been under growing pressure from one of its key investors, Marcato Capital Management, to push through a sale.
Following what it calls a “thorough and wide-ranging process to consider potential interest in an acquisition of Deckers”, it has concluded that a sale is not in the best interest of the company.
The Deckers board has explained that it contacted 90 potential acquirers, both domestic and international, but no transaction was concluded. It has said it remains open to considering “strategic and financial alternatives” that will enhance stockholder value.
The announcement came as Deckers reported sales of $482.5 million in the second quarter of the 2017/18 financial year, a slight decline compared to the same period of last year. Revenue from the Ugg brand fell 2.9% to $400.4 million, but Hoka One One brand sales jumped 34.4% to $40.6 million.
Marcato Capital Management, which now owns an 8.4% in Deckers, has suggested the company sell Hoka One One in order to focus on the Ugg brand, best known for its double-face sheepskin boot.
Share this story:
