Deckers Brands, the parent company of Ugg boots, has announced a review of strategic alternatives. The announcement is fueling speculation that the company may be put up for sale.
Deckers issued a statement on Tuesday, saying that its board of directors had initiated a process that includes an exploration of strategic alternatives to enhance stockholder value. According to the statement, this may include a sale or other transaction; however, such a transaction is not a fait accompli. There is also no timetable for the completion of the review process.
“We have made significant progress in streamlining our cost structure, optimizing our retail store fleet, and realigning our brands, with the goal of improving profitability,” Dave Powers, Deckers president and CEO said in a release.
“The management team continues to remain focused on driving improvements in the business through our recently announced $150 million savings program,” he continued. “We are also continuing to explore additional margin-enhancing opportunities and plan to further articulate more details on our upcoming year-end earnings call on May 25, 2017.”
Watch on FN
In addition to hero brand Ugg, the Deckers portfolio includes Teva, Sanuk, Ahnu, Hoka One One and Koolaburra.
