“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,” Dave Powers, the president and CEO of Deckers, said in a news release out April 25.
According to the release, the firm’s board of directors and management believe the move will enhance stockholder value. The release said:
“The Board believes now is an appropriate time to explore a broad range of strategic alternatives that may have the potential to unlock further value. While the Board conducts its review, the entire Deckers team remains committed to improving operations and profitability.”
Moelis & Company, the New York-based investment bank, will advise the firm on the review.
Deckers Outdoor emphasized that “there can be no assurance that the strategic review process will result in a transaction” in a statement. Regardless, Wall Street has responded positively. Deckers’ stock is up 7.2% in after hours trading.
Deckers Outdoors saw its stock price crash by more than 21% in February after announcing disappointing quarterly results across the board for its crucial holiday quarter. The company missed on earnings, revenue, and guidance.
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April 26, 2017 at 02:02AM
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