(Adds details, background)
By Michael Flaherty
Feb 8 Activist hedge fund Marcato Capital
Management LP reported a 6 percent stake in Deckers Outdoor Corp
, saying it intends to discuss strategy and options for
the struggling maker of UGG boots and apparel.
Marcato's disclosure sent Decker shares up 8 percent to $49
late on Wednesday.
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.
But growth has slowed, and Decker's share price has fallen
by half since the start of 2015.
The $1.5 billion company reported weak earnings last week,
missing analyst expectations and cutting its 2017 revenue
forecast, sending shares down nearly 20 percent.
Marcato said in its securities filing that it intends to
hold discussions with Deckers regarding its business, strategies
and other matters. (bit.ly/2lrAAeI)
Marcato said the talks may include options to boost
stockholder value through strategic alternatives such as
acquisitions or sales.
The San Francisco-based activist fund is locked in a proxy
fight against restaurant chain Buffalo Wild Wings and
recently joined the board of crane maker Terex Corp.
Marcato's stake in Deckers Outdoors makes it the company's
sixth-largest shareholder, according to Thomson Reuters data.
(Additional reporting by Sruthi Shankar in Bengaluru and Noel
Randewich in San Francisco; Editing by Savio D'Souza and