According to a recent Huffington Post article, 79% of men really do notice the shoes women are wearing, and 59% go so far as to say they show poor taste in fashion. While women have been practicing walking in high wedges, men have not been impressed. Wedges topped the list of the ugliest shoes by a whopping 71% of men.
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My argument of why I am not bullish is summarized below:Brand shows signs of losing customer interest (per market research and Google trends) COGS (Sheepskin pricing) is going to affect margins going into 4th quarter and forward, but is not likely to impact future earnings growth enough to justify 20% upside to current price, and growth of EPS will not be able to resume at high previous rates Shortened holiday season and weak retailer traffic occurring in 2H 2013 Wholesale sales have been weak in past few quarters: indication of demand for brand waning. International retail growth strategy is also going to have lower margins) E Commerce results were strong (I like the e commerce growth potential but they are going to face competition, as every retailer is utilizing e commerce and social media) Input Costs:Number of sheep slaughtered has been increasing in recent quarters indicating potential input pricing benefits in the future Management recently stated they are looking to use pure in 10% of their product by end of 2013 and 25% over longer horizon. Expect most of major impact to be in FY14 Weather: Weather trends for September of this year do not show a ugg boots sale 2011 rusradio online radio colder fall season.
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