SLIDING sheepskin prices are adding to lamb producers’ woes.
Values for the byproduct have fallen from $30 last year to just a few dollars in the past month, with demand drying up.
Processors say part of the reason is the weak world economy, with less demand for car-seat covers and high-end UGG sheepskin products.
But a cool winter in the northern hemisphere has also left big stocks of Ugg boots in countries such as the US.
Australian Lamb Skin Processors director Darren Vinton said buyers were not placing orders.
“Prices hit a peak last year, selling up to $30, but have fallen recently to $5 to $10 or less,” Mr Vinton said.
“The footwear market drives sheepskin prices, with a huge demand in Europe and the US.
“But Ugg boots are not a necessity, and when that market is quiet, we (Australian processors) don’t have a fallback position on what to do with the skins.”
The huge demand for Ugg boots in the past couple of years had actually worked against the industry, Mr Vinton said.
“The past two years has seen the footwear market so strong that it cut out a lot of the other users of sheepskins which have gone out of business,” he said.
Mr Vinton said he saw no end to the current low rates.
“How long we will stay at the bottom, who knows?” he said.
He said good lambskins were still making $10, but similar skins had made $30 last December.
Meat and Livestock Australia sheepmeat analyst Rob Barker said skin prices peaked about this time last year, but had been getting cheaper throughout this year.
“Depending on skin type, prices reached about $33 for top-quality Merino skins last year,” he said.
He said the price fall was due to several factors, including higher numbers.
Skin quality had been affected by a dry season in western Victoria, which also put downward pressure on prices, as had “very limited activity from Chinese buyers, which has flowed on to European buyers”.
Mr Barker said there was no sign of a resurgence in interest in skins.
“If the Australian dollar stays a bit lower, there could be some improvement,” he said. “But the lower skin price can have a large influence on overall returns – a $10 to $15 difference between last year and today for each lamb or sheep adds up over large enough numbers.”
BALLARAT Ugg Boots specialises in Australian-made ugg boots and tailor-made sheepskin car seat covers, which are made on-site in Ballarat.
Terence Yii has more than 24 years of experience in making tailor-made sheepskin car seat covers using top quality, plush 24mm to 28mm wool length sheepskin.
All covers are suitable for cars with side airbags, with free quotes and fittings.
The covers are made to order and have a full one-year warranty.
Terence would also love you to check out his great range of ugg boots and sheepskin footwear, which includes genuine sheepskin moccasins, slippers and scuffs, as well as vests, baby ugg boots, baby rugs, long and short wool rugs and much, much more.
While you’re there, check out Ballarat Ugg Boots Schweiz discontinued stock, with savings of up to 50 per cent off (while stocks last).
Ballarat Ugg Boots has one location and one shop only at 4 Stonepark Road, opposite the saleyards and off Latrobe Street.
Opening hours are Monday to Friday, 9.30am to 5.30pm, and Saturday 10.30am to 1.30pm.
Sheepskin boot brand Mou is aiming to double its number of UK stockists, capitalising on Ugg having recently axed several of its key wholesale accounts.
Mou, established in 2002 by Shelley Tichborne, currently has around 14 stockists in the UK including premium etailer Net-A-Porter, footwear etailer Rubbersole and premium indie Milk in Shoreditch.
“This year there will be a lot of people who are looking for alternatives to Ugg,” said Tichborne. “So hopefully we can capitalise on that and let people know about Mou.”
Tichborne added that Mou would explore potential collaborations with designers this year for specific retailers as well as introducing a range of bags for next season.
“I hope we can grow the brand organically and I want to double the number of stockists in the next season,” she said.
Retail prices for Mou range from £59 for baby booties up to £425 for a mid-length fur boot.
Drapers revealed in February that sheepskin boot brand Ugg schweiz was to axe several high profile stockists for autumn 12 including etailers Asos and Cloggs, young fashion mini-chain Aspecto, footwear retailer Footasylum and young fashion chain USC.
Ugg Classic Tall Stripe Cable Knit Style# 5822 Womens
Most Helpful Customer Reviews
Better than regular UGGs, but the Pink ones are too light. January 30, 2011
By AmandaMacky
I don’t like regular Uggs. I think they’re pretty generic and I never thought I’d own a pair of boots with the name UGG on them. These, however, really caught my eye.
I got the grey and pink ones cause I thought they were the neatest color combo available.
So they’re pretty cool boots and I get compliments all the time. In line with hipster fashions, they go better with “jeggings” than anything that has a flare because when you stuff your pants into these boots, you can see it.
Continue reading »
Ugg Lattice Cardy boots. Composed of a wool blend and a sheepskin sock liner for extra comfort. A light and flexible outsole along with a suede heel guard provides durable wear all season long. Three oversized wood buttons, allowing to be styled up and buttoned, slouched and slightly unbuttoned, or completely cuffed. Imported.
Most Helpful Customer Reviews
LOVE February 11, 2012
By Teacher Staci
Color Name:Charcoal|Size Name:9 B(M) US|Amazon Verified Purchase
Bought these boots because they were cute – didn’t expect them to be the comfortable too! Best money spent on a pair of boots! So warm, so cozy and so cute! I forget that I have them on and by the end of my workday my feet don’t hurt a bit! I bought them 1/2 size smaller than what I wear because I heard they would stretch out. They fit very nicely but I worry after a few months of pulling them on they might start pulling apart…only time will tell.
Love them March 1, 2012
By Gerié Lombell
So comfy I feel like I am wearing my slippers. Just order 1/2 size bigger as it says in another review. A bit pricey but worth it.
The women’s UGG® Classic Tall Bomber features 100% sheepskin lining and can be worn all the way up or cuffed down providing a different look. All boots in our Classic Collection feature a soft foam insole covered with genuine sheepskin and have a light and flexible, molded EVA outsole designed for amazing comfort with every step. This style tends to run a size large. We recommend ordering a size smaller from your typical shoe size. If you are in-between sizes, we recommend ordering one-half half down. This boot contains materials that are not waterproof.
Most Helpful Customer Reviews
Torn b/w UGGs and EMUs? Read me! December 16, 2008
By P. Kapur
I spent several days researching the right pair of boots. I narrowed it down to UGGs which had very positive reviews but were pricey, and EMUs which seemed to be basically the same product for half the price. Sounds too good to be true? It is.
Here is what I found:
- UGGs are made of sheepskin inside and out, and cost $130-$160 for
the most popular type (called Classic, short or tall), more for the
“fancier” varieties (but I honestly prefer the look of the Classic
model)
- EMUs have TWO types of products: (1) sheepskin inside and out, and
(2) cowhide outside, merino wool inside. The first variety cost the
same as the UGGs, the second one (not as cozy, not as comfi) cost
about half the price
So, I went with the UGGs which appear to be the more original/popular and am VERY VERY happy – these boots really insulate you from the harsh cold completely. Happy feet are worth the $$ for me in thise case. I got the tall variety in grey, and LOVE LOVE LOVE them.
Another misconception that I’d like to correct – NEITHER is 100% waterproof – as in they’ll basically keep you warm and dry in a reasonable amount of rain/snow, but if you drench them it will show (common sense). UGGs has real waterproof models which are more like regular snow boots etc. UGGs also has a water-resistant treatment to improve the durability, but friends I spoke to didn’t do that and haven’t had any water seeping in when she’s worn UGGs in the rain.
So basically, the real deal sheepskin product costs the same (and is similar in quality, comfort).
I had such a hard time figuring this out – shame on all the websites for sneakily pretending that the cheaper EMUs are made of the same material, which they are not!
Absolutely Amazing January 29, 2007
By Jess
Color Name:Sand|Size Name:5 B(M) US
I fell in love with my Uggs the moment I slipped them onto my feet for the very first time. They are wonderfully comfortable & very warm. No, your feet won’t sweat in warm weather, I promise. Most comfortable fit shoe of my life. I wear them at least 6 days a week! **Be sure to order a size down from your normal shoe size. I’m normally a 6, but I bought a 5.** Wear these withOUT socks and they feel like heaven. Wearing them with socks is bulky & well, they weren’t meant for sock wearing. Cave in & buy them, it’ll be the best $139 you’ve ever spent!!! Stuck on what color to get? Black turns your feet black. The dark tan is hard to match things with. The sand is perfect for everything!! Put them under your pants, or over.. they go perfect with any day’s outfit or weather 
The best November 11, 2007
By basil308
Color Name:Sand|Size Name:8 B(M) US
These UGG boots are amazingly comfortable. I bought mine in sand, which seems to go with everything. I normally wear a size 9 or 9.5, but ordered these in 8; they fit perfectly. Treat these with the protective spray BEFORE ever wearing them. I put three coats on my before wearing, and they still look like they are fresh out of the box. Worth the money.
If you are a shoe fanatic like me, you know that Nordstrom’s shoe department is heaven. An expensive heaven but heaven nonetheless. Nordstrom’s is promoting the seven top sandal trends. So in trying to stay trendy, I searched out some alternatives to their designer shoes.
WEDGES: Nordstrom has a wedge by Vera Wang called the Pippa. It’s $198. DSW has a wedge by Kenneth Cole Reaction for $49.95.
FLATS: Nordstrom has a flat by Michael Kors called Darci for $134.95. DSW has a flat by Steve Madden for $39.95. (Pic #4)
ESPADRILLES: Nordstrom has an espadrille by Franco Sarto for $79.95. Marshall’s has a Franco Sarto espadrille for $39.99
BRIGHTS: You can get this ‘Lucianna’ by Ugg for $149.95 at Nordstrom. At Marshall’s you can get Rocket Dog sandals for $29.99.
NEUTRALS: Another Michael Kors shoe is the ‘Seville’ for $174.95 at Nordstrom, while the Tahari ‘Dayna’ sandal is $69.95 at DSW. Another neutral at Nordstrom is the BP Platinum ‘Medina’ for $69.95, while the Lulu Townsend ‘Rosalyn’ is $44.95.
PLATFORMS: The Sam Edelman ‘Myer’ is $109.95 at Nordstrom. The ‘Gracee’ by Rampage is $39.95.
METALLICS: The Cole Haan ‘Air Melisa’ is on sale at Nordstrom for $99.90. At DSW the Audrey Brooke ‘Aster’ is $34.95.
Shopper’s tip
It’s not hard to get the latest trend for a great price. Take some pictures with of your dream shoe and you’ll score.
UGG Australia boots aren’t generally the things you want to pull on when the weather outside gets frightful, but the mild winter may have hurt overall sales in the last quarter for Deckers, the boot’s manufacturer.
SeekingAlpha.com opines that even though parent company Deckers owns other brands such as Teva and Sanuk, the company is made or broken on the success of UGG.
“We think the exceptionally mild weather created a tough selling environment, which dragged down sales and hurt pricing in the first quarter,” the site notes. “We also think some pent-up demand may accumulate because consumers didn’t really have the opportunity to dress for the weather as much as they might in other years.”
The good thing is that Ugg boots are positioned as a classic — they don’t change too much year-to-year so whatever didn’t sell this winter can just be trotted out again next year. As SeekingAlpha points out, “UGG boots aren’t merely a fad, but rather a staple of the American female’s closet.”
Of course, UGG designs for men, too, as the brand’s spring campaign and Tom Brady endorsement in the U.S. points out. And the brand offers more than just its iconic sheepskin boot.
All that doesn’t help Deckers at the moment.
The company’s first-quarter earnings were reported Thursday and they needed some help. Sales did go up 20% to $246 million in the first quarter, but earnings per share went in the other direction, falling 59% to $0.20. Deckers is expecting that to fall even more during the second quarter.
The Mail reports that the company’s shares have fallen steadily since hitting a year-long high in the fall at $117.66. At the close of business Friday, it was $51.88.
Those boots may have been made for walking but Deckers surely would like them to be walking firmly in another direction, instead of the uphill climb they’ve been on recently.
Sterne Agee analyst upgraded his rating on shares of Deckers Outdoor Corp. Wednesday but remained wary of buying any of the stock until the shoe maker’s future becomes clearer.
THE OPINION: Analyst Sam Poser now rates the shares “Neutral,” up from “Underperform.” He said the company’s stock price has been within striking distance of his recent price target of $60.
But he said he is concerned about the company’s earnings potential and about weak sales of its Ugg shoes and boots — and he wouldn’t buy the shares yet.
Deckers, which also makes Teva sandals, Sanuk and other casual and outdoor shoes, expects most of its annual sales and earnings in the second half of its fiscal year. Poser said information about the strength of its key Ugg brand won’t be available until late July at the earliest. That’s when Nordstrom holds its “anniversary” sale.
“It continues to be clear to us that for the first time in over eight years, supply of Ugg boots has met demand for UGG boots,” Poser wrote in his note.
Historically, some UGG boots have sold out around February and weren’t available again until late July, which meant demand built each year. But this year, there is a glut because Deckers made more mens Uggs and consumers have bought fewer due to higher prices and an unusually warm winter.
THE STOCK: Shares of Deckers rose $1.59, or 2.5 percent, to $66.59 by mid-afternoon. They are trading near their low of $61.08 for the year and have fallen more than 40 percent from an all-time closing high of $115.24 in October, but the first time shares of Deckers ever traded above $60 was late 2010.
Dr Mumbo surmised that Facebook’s new Timeline for brand pages could cause the unwary social media manager some bother.
He now realises he might have been understating it.
The official Facebook page for footwear brand Ugg Australia claims its mission is “to build on the deep relationships between the UGG brand and our customers and continue to develop lasting relationships with consumers around the world”.
He’s willing to bet they didn’t mean a relationship quite this intimate…
(The image – pixellated below by Mumbrella – has been live on Ugg Australia’s Facebook page for 11 hours at time of writing…)
