Ugg boot owner backs away from sheepskin
28/10/2013
"Ugg Pure has had an immediate impact on enhancing our product line and will result in reduced costs," said Deckers CEO Angel Martinez.
Ugg Pure is wool woven into a durable backing that is being used as a substitute for sheepskin in the lining and footbeds of some of the company's shoes.
The company’s sheepskin costs will drop 10% in 2014, thanks to a drop in prices of the raw material as well as the increased use of Ugg Pure.
"The benefits of Ugg Pure will also extend beyond the brand's core footwear business into adjacent categories like home and allow us to target new consumers, particularly in China," Mr Martinez said.
Sales of Ugg products, which accounted for 87% of Decker's third-quarter revenue, rose 1.3% to $337 million.
The price of sheepskin has led to falling profits in the last few years - however, its decline in 2013 led to the company announcing it was back on track.
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