UGGs in Play With Deckers Valuation Seen Luring Buyers: Real M&A

For shoppers seeking a U.S. footwear deal, there’s no better bargain than UGG boots.

While warmer weather and higher sheepskin costs crimped profits at Deckers Outdoor Corp. this year, Jefferies Group Inc. says that’s also made the seller of UGG brand sheepskin boots and Teva sandals less expensive for acquirers with the stock down 56 percent. The Goleta, California-based company fell last month to its lowest level relative to earnings since 2009 before ending last week at 8.2 times profit. That’s still the cheapest valuation of any U.S. footwear and accessories maker larger than $1 billion, according to data compiled by Bloomberg.