Deckers Brands announced Tuesday afternoon that it is “exploring strategic alternatives,” which typically is code for trying to find a buyer for some or all of its businesses.
The company, which owns the Ugg, Teva, Sanuk and Hoka One footwear brands, has been under pressure from two activist investors that have pushed the company to take action to increase shareholder value.
Deckers said it would explore a broad range of strategic alternatives that may include a sale or other transaction, though there is no guarantee.
In February, during another tough quarterly earnings report, the company said it was working to restructure its business to become more nimble and to cut expenses in order to have more resources to invest in the brands with the most potential for growth – namely Ugg and running brand Hoka, executives said.
Previously the company had identified $60 million in savings, including closing 24 retail stores and consolidating offices.
Deckers said it plans to cut an additional $90 million in expenses over the next few years, including closing more stores and cutting jobs at Deckers headquarters.
Deckers also said at that time that it was writing down the value of the Sanuk brand as growth prospects have narrowed from previous expectations given the changing retail environment.
The company bought Sanuk in 2011 for $120 million.
This afternoon, Deckers said the board of directors and management team are focused on enhancing stockholder value and are committed to pursuing the right course of action for all stockholders.
“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,” the company said in a statement. “While the board conducts its review, the entire Deckers team remains committed to improving operations and profitability.”
