(Adds Deckers' spokeswoman's comment)
March 27 Investment management firm Red Mountain
Capital Partners LLC said in a letter on Monday that it is
pushing apparel and accessories maker Deckers Outdoor Corp's
board to explore a sale of the company.
Red Mountain, which owns about 3.3 percent of Deckers'
outstanding shares, said in the letter that the apparel maker's
stock had underperformed across all major indices over the past
three to five years.
"This underperformance has been driven largely by
management's consistently poor capital allocation decisions,"
Red Mountain's Managing Partner Willem Mesdag said.
The letter comes nearly two months after activist hedge fund
Marcato Capital Management LP reported a 6 percent stake in
Deckers, saying it intends to discuss strategy and options for
the struggling maker of UGG boots and apparel.
Red Mountain also said the value of a sale to a strategic or
financial buyer is substantially higher than the operating plan
announced by the Deckers' management on Feb 2.
"We appreciate the views of all of our stockholders and we
value constructive input toward the shared goal of enhancing
stockholder value," a Deckers representative told Reuters in
response to the letter.
Sales of Deckers' sheepskin UGG boots, popular across U.S.
cities, college campuses and malls, exploded to $1.52 billion in
fiscal 2016 from $37 million in 2003. However, growth has
Deckers shares were up about 3 percent at $58.01 in extended
trading on Monday.
(Reporting by Gayathree Ganesan in Bengaluru)