Cold weather is heating up sales of Ugg boots. That's what one Wall Street analyst said Monday, sending shares of Deckers Outdoor Corp., the maker of the sheepskin boots, to their highest point in nearly two years.
THE SPARK: Sterne Agee analyst Sam Poser said he expects Ugg sales to have risen more than 20 percent in December, based on his own research. Poser has a "Buy" investment rating and $110 price target on Deckers Outdoor's stock.
THE BACKGROUND: The company's boot sales can be dependent on weather. Although it also makes shoes under its Teva and Sanuk brands, most of its revenue comes from its Ugg brand.
Much of the U.S. has been experiencing frigid temperatures and a wave of snowstorms, which could drive demand for Ugg boots.
ANALYSIS: Poser said the company's Ugg waterproof boots are doing "exceptionally well." Other Ugg products, such as slippers, have also seen a boost in sales, he said in a note to clients.
Deckers Outdoor did not immediately respond to a request for comment.
SHARE ACTION: Up $2.06, or 2.4 percent, to $87.79 in afternoon trading Monday. Its shares peaked at $88.77 earlier in Monday, their highest point since February 2012. The company's stock has more than doubled from a year ago.