The 10-Q reads this way:
“…in light of the recent and continuing changes in the retail environment, we also believe it is prudent to further reduce our global brick and mortar footprint. We expect to continue to reduce our footprint through a combination of store closures and the conversion of owned stores to partner retail stores, and, accordingly, we anticipate generating future cost savings. We are currently targeting a worldwide retail store count of approximately 125 owned stores by the end of fiscal year 2020.”
At June 30, Deckers had 96 concept stores and 63 outlet stores for a total of 159. These are “predominantly” UGG stores. Getting down to 125 stores will be a reduction of 21.4%. Some of the decline will be due to converting owned to partner stores. Partner stores “…are branded stores that are wholly-owned and operated by third parties. Upon conversion or opening of new partner retail stores, each of these stores become wholly-owned and operated by third parties.”
One can’t help but ask why, if Deckers doesn’t want to own these stores because of “changes in the retail environment,” the potential partners will. Perhaps that suggests these will mostly be store closures.