Goleta-based Deckers Brands, the maker of UGG boots and other footwear and apparel brands, is considering putting itself up for sale.
Deckers announced this week that it is reviewing a broad range of “strategic alternatives,” including a sale of the firm.
“We have made significant progress in streamlining our cost structure, optimizing our retail store fleet, and realigning our brands, with the goal of improving profitability,” Deckers CEO Dave Powers said in a statement. “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.”
The company will provide an update of its plans when it reports year-end earning results on May 25.
The statement comes a month after Red Mountain Capital Partners, LLC, an investment management firm owning approximately 3.3 percent of Deckers’ outstanding shares, urged the accessories and apparel maker to be sold.
Red Mountain Capital Partners, LLC, is pushing Deckers’ board to explore the sale of the company because the firm’s management believes the move will enhance stock values, according to a letter released on March 27.
“We believe that the board must compare the risk-adjusted net present value of management’s plan with the value that can be achieved for shareholders today through a sale of the company,” according to the letter.
Deckers has retained Moelis & Company, LLC, as its financial advisor and Wilson Sonsini Goodrich & Rosati as its legal counsel to assist in the review process.
In addition to the sheepskin and wool-based UGG footwear, the Deckers portfolio of brands includes Teva, Sanuk, Ahnu, Hoka One One and Koolaburra.
No further details about the possible sale are available, according to company spokeswoman Amy Feng.
“The company is not making other comments beyond what was released (online),” Feng said.
Deckers shares (DECK) closed down 10 cents Thursday at $60.45.
— Noozhawk staff writer Brooke Holland can be reached at bholland@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.