Deckers Outdoor Corporation (NASDAQ:DECK) makes niche footwear, such as sport sandals and luxury sheepskins. Like most clothing manufacturers, Decker's is subject to both the fickle fashion tastes of its consumers and general economic conditions. These vulnerabilities take on new dimensions for Deckers, however, due to the unique nature of its business. The company's main product is its UGG boot, a trendy sheepskin boot that accounts for three-quarters of its sales. The company's reliance on a single product, however, means that any shift consumer fashion preferences away from sheepskin boots will have a dramatic impact on its business. Moreover, a large part of the company's customer base consists of young middle income women, and this increases the company's sensitivity to economic conditions. The UGG boot can cost up to $200 and as such is considered a luxury by the company's customers. As a result, during downturns, UGG will be the first thing to get the boot. The company earned $265 million in revenue and $31 million i net income in 2009.^[1]

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