I heard these UGG shoes (boots more exactly) from my friend Sophie not long ago. Today when I visited the west county mall, I stopped by the Journeys and Nord Strom, and I saw those boots were both displayed on the predominant spots. Not surprisingly, I also saw quite a few people are wearing those funky (fashion) shoes. Being curious about the stock, I looked at company Deckers (DECK) which owns UGG, and attributes its growth mainly to UGG boots lately. Here is the Q3 2007 report. While the recent growth is very impressive, I think:
1) Its sole dependency on UGG for growth could make it more vulnerable to the change of consumer taste;
2) It got majority of revenue from the US market, a slowdown in US economy could spell trouble for them;
I will add more comments if I got time to read its 10Q and 10K.
