Deckers Outdoor Corp. , parent of the UGG shoe brand, was named clearest winner of Black Friday week by the footwear and apparel team at Wedbush on Monday, with analyst Tom Nikic citing several positive reads for the brand that promise a very strong holiday season. That’s a positive for UGG, which generates about half its annual revenue in the fourth quarter, Nikic wrote in a note to clients. Highlights include that UGG was one of the only brands tracked by Wedbush that was less promotional last week in the direct-to-consumer channel versus last year and one of few that saw growth in online searches, “which suggests that interest in the brand remains high even as most other brands see less robust demand,” said the note. Other positives include longer-than-usual lines at stores and significant buzz on social media. Overall footwear and apparel saw high levels of discounting. “While most retailers and brands have telegraphed that this Holiday season will be promotional, so this doesn’t come as a total surprise, the question that needs to be answered from here becomes: “Were the Black Friday promos successful enough to keep pricing somewhat rational through yearend? Or are we headed for a race to the bottom between now and January,” wrote Nikic. Deckers stock was not yet active premarket, but have gained 4% in the year to date, outperforming the S&P 500 which has fallen 15%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.