July 16, 2012
Today, Austin discusses why Deckers Outdoor (Nasdaq: DECK ) has struggled so much in 2012. The company has lost 40% so far this year despite a five-year annual average growth rate of 35%. Simply put, the growth outran the company’s fundamentals. The company's overreliance on its UGGs brand resulted in margin compression following cost spikes, and similar issues threaten the company's future. But the company responded by opening its own vertically integrated retail stores that should boost margins and distribute its product more widely. Coupled with great growth opportunities and lowered costs, this gives the stock a lot of potential going forward.
Retail has been a tough environment the past few years. The growth of online retail coupled with soft consumer spending prompted our analysts to create a special new report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and find out how they’re planning to ride the waves of retail's changing tide. You can access it by clicking here.