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3Q profit surges at Deckers, maker of UGG boots

Deckers Outdoor Corp. said Thursday that third-quarter profit rose 48 percent on higher sales of its UGG boots.

The results beat expectations, and the company raised its forecast for full-year earnings.

The shares rose $1.85 to close at $106.18. In about an hour of extended trading after the results, they climbed $5.87, or 5.5 percent, to $112.05. The 52-week high was $109.90.

Deckers makes footwear under several brand names, including its original, Teva sandals. But its star is the UGG boot, which has become a fashion statement.

UGG-brand sales rose 47 percent and accounted for 90 percent of the company’s third-quarter revenue.

Deckers expects that 2011 earnings per share will rise 22 percent over 2010, up from an earlier forecast of 17 percent. That suggests adjusted earnings of $4.92 per share instead of $4.72 per share. Analysts were already looking for $4.86.

The company lowered its fourth-quarter view, saying it will incur some expenses that had been budgeted for the third quarter. Instead of a 36 percent increase in earnings per share, it expects a 33 percent increase.

Deckers raised revenue expectations for both the fourth quarter and the full year. It implied 2011 revenue of more than $1.3 billion, a 33 percent increase.

Net income rose to $62.5 million, or $1.59 per share, compared with $42.1 million, or $1.07 per share, a year earlier.

Revenue jumped 49 percent, to $414.4 million from $277.9 million.

Analysts expected the company to earn $1.36 per share on revenue of $384.8 million.

The Goleta company said international sales more than doubled, led by strength in the United Kingdom and the Benelux nations. U.S. sales rose 26 percent. The company has 37 stores, and revenue at stores open at least a year rose 15.4 percent.

Ugg outlet boots for a fascinating appearance

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For Ugg classic short, there you may also add design with a selection of the colors proverb pebble or mild grey marbled. Maintaining all of the highest quality materials and comfort of the original classic short, some boots with UGG logo printing completely covers the boots in a metallic like shine might actually rage all around us. Ugg classic cardy boots, in my point of view, are the best to show off our elegance in springtime. The knit shafts with a wool blend can definitely flatter your legs.

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Ugg boots Design

Ugg boots are made from sheepskins with fleece attached. The fleece is tanned into the leather and the boot is assembled with the fleece on the inside. The soles of the boots are commonly made from Ethylene-vinyl acetate (or EVA),[citation needed] and the stitching is often prominent on the outside of the boot. The fleece draws away moisture, keeping the feet dry and at body temperature. The original design was a pull-on boot in natural (undyed) tan sheepskin, about 10 inches (25 cm) in height, with rounded, almost shapeless uppers; this is now described as the “classic” design. Today they come in a variety of colours, including black, pink, blue, chestnut, and fuchsia. They are available in both pull-on and lace-up varieties and their height can range from just above the ankle to above the knee.

Ugg boots often have a synthetic sole, although this is not universal. They are available in a range of different colours, and they are produced by a number of manufacturers. The natural insulative properties of sheepskin gives thermostatic properties to the boots: the thick fleecy fibers on the inner part of the boots wick moisture and allow air to circulate, keeping the feet at body temperature. Ugg boots are able to keep feet warm in relatively cold weather even if they are worn without socks.[citation needed]

Some variations of ugg style boots have also been made from kangaroo fur and leather. There are also synthetic boots. Although derided as “fake” by some in the industry,their lower price made them appealing to large retail chains such as Myer.

In 2009 American podiatrist Ed Chairman raised concern that the regular wearing of ugg boots could be deleterious to foot health due to the lack of arch support.

Ugg boots History

The origins of the ugg boot style are disputed, with both Australia and New Zealand claiming to have been the origin of the footwear.[4] Sheepskin boots were known in rural Australia during the 1920s.[4] While it is not clear when manufacturing started, by 1933 ugg boots were being manufactured by Blue Mountains Ugg Boots,[5] and Mortels Sheepskin Factory was making the boots from the late 1950s.[6]

In regard to naming, it appears that ugg boots, ugh boots and ug boots have been used as generic terms for sheepskin boots in Australia and New Zealand since at least the 1970s,[1][7] although individual accounts have suggested that the terms (or variations thereof) were employed earlier – for example, “fug boots” were worn by pilots during World War I.[8] The 1970s saw the emergence of advertising using the names,[1] but Brian Smith has stated that the boots were referred to as “uggs” long before the word was trademarked.[9] Frank Mortel of Mortels Sheepskin Factory claims he named them “ugg boots” in 1958, when Mortels started production, after his wife commented that the first pair he made were “ugly.”[10][11][12][13]

In the 1960s, ugg boots became a popular option for competitive surfers,[7] who used the boots to keep their feet warm after exiting from the surf.[14] Surfing helped popularise the boots outside Australia and New Zealand, when Brian Smith started selling the boots in the United States through the company Ugg Holdings, Inc. in 1979.[14] Ugg Holdings was sold to Deckers Outdoor Corporation in 1995. Prior to Deckers entering the market, ugg boots were not cosidered to be a fashion item,[2] but in the late 1990s and early 2000s sheepskin boots bearing the UGG brand emerged as a fashion trend in the US through Deckers’ promotions, with celebrities such as Kate Hudson, Sarah Jessica Parker, Oprah Winfrey and Pamela Anderson wearing the boots;[15][16][17] Winfrey featured UGG brand boots on her talk show.[18] Anderson’s rejection of ugg boots in 2007 due to animal rights concerns made the news.[16] Deckers’ actions to promote their product “led to an exponential growth in the brand’s popularity and recognizability.”[19] The company reported US$689 million in UGG sales in 2008,[20] almost a 50-fold increase from 1995.[21]

Independent testing by Channel 7 in Perth, Western Australia ranked the Australian synthetic ugg boots made in China higher in quality than Deckers, which are also made in China, and the Australian made sheepskin boots.[22]