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Article Date: March 2017
Word Count: 235

Deckers Urged to Explore Sale by Activist Investor

Red Mountain Capital Partners said in a public letter sent to DECK’s board it believes that a strategic or financial buyer would put a higher value on the company’s brands than its own operating plan would deliver. In the letter, Red Mountain claims that Deckers’ poor stock performance “…has been driven largely by management’s consistently poor capital allocation decisions, a bloated cost structure and the absence of any alignment between executive compensation and shareholder value creation.” About 3.3% of DECK shares are owned by Red Mountain, and were acquired in 2015 when the share price was considerably higher, according to ... Log in to view full article.


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