Deckers Outdoor, the maker of the popular UGG brand, has announced it is reviewing “strategic alternatives” that include the sale of the firm.
“We have made significant progress in streamlining our cost structure, optimising 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 emphasised 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.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.