Deckers Outdoor Corp. is launching its Ugg brand in 200 Macy’s Inc. stores, a move that Susquehanna Financial Group analysts call “dangerous.”

The promotional environment at Macy’s gives analysts cause for concern. And Susquehanna says their checks indicate that higher-end Ugg wholesale accounts are being cautious with Ugg because of wide distribution.

“History has taught us that Macy’s has and will promote heavily in order to drive sales while demanding markdown money,” the Friday note said.

Companies like Coach Inc. US:COH and Ralph Lauren Corp. RL, +0.51% have been pulling back from department stores in an effort to keep promotions at a minimum.

They included one 15-year-old girl who was told by a sales assistant the boots were genuine but could be sold at knock-down prices as “they weren’t made at the real Ugg factory”.

Sutton, formerly of Newfield Road in Hagley, was behind the till on 27 December 2014 when police swooped and in an interview, he claimed he hadn’t committed a criminal offence and that it was a matter for trading standards.

However, West Midlands Police investigators eventually secured three charges of unauthorised trademark use against the 49-year-old.

Sutton admitted the offences and at Birmingham Crown Court on Tuesday (May 2) was fined £5,000 and ordered to pay £980 in costs; he faces being jailed for three months if he fails to pay the fine.

PC Min Patel, from Birmingham Police’s Investigations Team, said:

It was a brazen fraud: he rented a unit in one of Birmingham’s most prestigious shopping centres and placed Ugg signage in windows and above the door to add further credibility to the deception.

The packaging was professional and Ugg labels had been stitched onto the boots…most customers were left convinced this was a reputable business.

Some shoppers may have suspected the boots were fake but were happy to part with their money for the name and not the quality.


Police seized £7,000 in cash from Sutton’s car while 100 pairs of Ugg boot fakes were recovered from the Pavillions store.

In interview, Sutton denied giving shoppers the suggestion the boots were genuine as that would “insult their intelligence”.

He refused to name the supplier and said he was “out to prove a point” to trading standards having previously had a greetings card shop closed down by them.

November 9, 2017

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