Why Deckers Has Crashed in 2012

Updated

Today, Austin discusses why Deckers Outdoor (NAS: DECK) has struggled so much in 2012. The company has lost 40% so far this year despite a five-year annual average growth rate of 35%. Simply put, the growth outran the company's fundamentals. The company's overreliance on its UGGs brand resulted in margin compression following cost spikes, and similar issues threaten the company's future. But the company responded by opening its own vertically integrated retail stores that should boost margins and distribute its product more widely. Coupled with great growth opportunities and lowered costs, this gives the stock a lot of potential going forward.

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The article Why Deckers Has Crashed in 2012 originally appeared on Fool.com.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Nike. Motley Fool newsletter services recommend Nike and True Religion Apparel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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