Company Shifts Attention to Highest Potential Brands
- Deckers is phasing out Koolaburra brand
- Ugg brand gains strength with $2.2 billion in net sales in the last fiscal year and $1.2 billion in Q3 of this year
- CEO Stefano Caroti expects Koolaburra website to sunset by March 31
- Koolaburra accounts for 1% of Deckers’ total revenue
- Deckers also sold Sanuk line last year
- Focus on highest potential brands: Ugg and Hoka
- Ugg brand positioning as a leading global lifestyle brand
Deckers is phasing out its Koolaburra brand in favor of its higher-priced Ugg and Hoka brands. The company expects the Koolaburra website to be sunset by the end of this fiscal year, with wholesale operations winding down throughout the calendar year. CEO Stefano Caroti highlighted that Ugg has solidified its position as a leading global lifestyle brand. Deckers sold Sanuk line last year and is focusing on its most significant organic opportunities. Koolaburra accounts for only 1% of total revenue.
Factuality Level: 9
Factuality Justification: The article provides accurate information about Deckers phasing out its Koolaburra brand and focuses on Ugg instead, with relevant details such as net sales figures for each brand and the CEO’s statement. It also mentions the recent sale of Sanuk and the company’s overall financial performance. The information is based on a research note from Morningstar Senior Equity Analyst David Swartz, making it reliable.
Noise Level: 3
Noise Justification: The article provides relevant information about Deckers’ decision to phase out the Koolaburra brand and focuses on its impact on the company’s financial performance. It also includes quotes from experts and analysts, but it lacks in-depth analysis or exploration of long-term trends or consequences of this decision.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Deckers’ decision to phase out its Koolaburra brand and focus on its higher-performing brands like Ugg and Hoka. This impacts the company’s financial performance as it affects their net sales and revenue distribution across different brands. It also mentions the recent sale of Sanuk, which shows a strategic shift in the company’s portfolio. However, there is no direct mention of any specific financial markets being impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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