US apparel and accessories maker Deckers Outdoor explores sale
26 April 2017
US apparel and accessories maker Deckers Outdoor Corp yesterday said that it was exploring strategic alternatives, including a sale of the company, and has hired Moelis & Co LLC as financial adviser.
Based in California, Deckers Outdoor has annual sales of $1.52 billion and market cap of $1.89 billion.
Last month, investment management Red Mountain Capital Partners, holding around 3.3-per cent stake in Deckers Outdoor, said that the company's stock had underperformed since the past three years.
It had sent proposals to the board to rationalise the company's retail store network, streamline its brand portfolio, cut cost, and align its executive compensation with shareholder value creation.
The investment firm, later backed by activist investor Marcato Capital Management, urged the board of Deckers Outdoor to explore a sale in order to restore shareholders' confidence.
Deckers Outdoor yesterday announced that its board has initiated a process to review a broad range of strategic alternatives, including an exploration and evaluation of strategic alternatives to enhance stockholder value, which may include a sale.
Dave Powers, president and CEO of Deckers said, ''The management team continues to remain focused on driving improvements in the business through our recently announced $150 million savings program. 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.''
Deckers Brands is a designer and seller of footwear, apparel and accessories developed for both everyday casual lifestyle use and high performance activities.
Its portfolio of brands includes UGG, Koolaburra by UGG, HOKA ONE ONE, Teva and Sanuk.
Deckers Brands products are sold in more than 50 countries through select department and specialty stores, 138 company-owned and operated retail stores, and select online stores, including company-owned websites.