Deckers Outdoor Upgraded at Piper Jaffray

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July 17 (Bloomberg) -- On today's "The Next Big Trade," Piper Jaffray's Erinn Murphy discusses Deckers Outdoor and her investment ideas with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

? time for our next big trade, where we bring you the boldest calls on wall street and the people behind them.

All hands on deck, outdoors, best known for ugg boots.

Even tom brady has not been able to put points on the board.

Why now?

Aaron murphy is here to explain.

Thank you for joining us.

Why does, why now?

We think that deckers is a fundamental margin recovery story.

At the half of the year where there ugg brand becomes irrelevant part of the story, we think that margins can start to recover and gain ground, moving much more to the high overtime.

They realize they had to lower prices and are trying to find the right match.

But do you think of that?

-- what do you think of that?

The brand was very headstrong in terms of their consumers, significantly higher demand oversupply, they had the upper hand in terms of pricing for several years may stun elastic city at that time.

There was also a piece of the business moving higher during that time.

Sheepskin costs have gone up fairly significantly and it came to a head about one year ago, where they made some adjustments to pricing.

We do think that the price relationship is in a good place going forward and we should start to see some margin stabilization going forward.

Teenage girls are a big part of the story, are they not?

One of the big things we have done for the last 13 years, we have started a significant survey and gone into schools in the spring and fall to capture what it is that teenagers like to buy.

What is most striking about the most recent survey was that the ugg brand started to see some stabilization.

It is now the fourth preferred footwear brand within the u.s. with a 9% share,. i was looking at the chart, nike is no.

1. right?

We will leave it there.

This text has been automatically generated. It may not be 100% accurate.

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