Few would have guessed that an Australian sheepskin Ugg boots worn by California surfers would grow from a seasonal fad to a global lifestyle brand. For parent com/pany Deckers Outdoor Corp., Uggs has done just that and it's taken the footwear maker's share price along for the ride. Deckers shares have more than doubled in the past year as ugg australia sales have surged almost 23 per cent following the brand's launch of an expanded year-round collection of sandals and casual footwear. uggs on sale is "no longer just a fall or holiday product and has proven that it can be a spring brand," says JPMorgan analyst Robert Samuels. Deckers went public 14 years ago with a share price of $24 (U.S.). Following that, however, shares were on a steady decline until around 2003, when they reversed course in price and volume after several celebrities, including Oprah Winfrey, praised the ugg boots uk brand, making it a must have item for holiday shoppers. The brand was also named Footwear News' brand of the year in 2003. Since then, shares have continued on a steady course upward, hitting a record high of $113.50 on Aug. 8. The stock, however, fell to below $90 after that as the overall market declined. The stock has since rebounded a bit, closing yesterday at $90.08. Deckers' stock also fell after the com/pany said it would delay filing its 10-Q for the second quarter because of issues regarding the underpayment and underreporting of taxes by certain of its foreign subsidiaries. A Deckers audit com/mittee is looking into the matter, which may result in Deckers having to restate past financial results. Due to the delay in filing its 10-Q, the Nasdaq Stock Market sent Deckers a letter saying the com/pany is not in com/pliance with filing requirements. Deckers has requested a hearing before the Nasdaq panel. The stock will stay listed on Nasdaq at least until the hearing. Deckers said the underpayment is no more than $500,000 a year and no more than $2.7-million total. Aside from the tax issue, some investors still view genuine ugg boots as just a fad that will eventually fizzle out as consumers move on to the next big thing in the footwear aisle. Twenty per cent of the stock's float is held by investors in a short interest position. "A lot of people on the bear side think the Ugg business is still a fad, the idea of wearing sheepskin boots is going to go out of style, and when it does, the business will suffer," says Wedbush Morgan's Jeff Mintz. Yet brand sales have climbed steadily every year since 2001, tripling to $116-million in 2004. And its products, including Ugg, have just begun to reach some consumers as the com/pany has expanded its international presence in recent years. International sales accounted for 12 per cent of Deckers total sales last year. Despite the stock's ascent, JPMorgan is keeping its outperform rating on shares of Deckers. And JPMorgan isn't alone. Most analysts recom/mend the stock. Price targets begin at $115, with Mr. Mintz the most bullish at $121. Deckers has a forward price/earnings ratio of 22.4 according to FactSet Research. Most analysts agree that it's difficult to com/pare the com/pany to other footwear retailers, given its three diverse brands. However, Mr. Samuels of JPMorgan says Crocs Inc. might be a good com/parison for Deckers as "each com/pany controls its own destiny through self-created new footwear categories." Crocs has a forward price/earnings ratio of 28.9, according to FactSet. It's not just a good brand keeping the com/pany on Wall Street's radar. Deckers' management has taken Ugg and the overall corporation forward, with Lazard Capital Markets analyst Todd Slater calling Deckers "one of the best managed com/panies in the footwear space." The com/pany opened its first Ugg flagship store in New York City last year and has more on the way. Deckers expects its Canadian distributor to open one full-price store in Montreal later this quarter, a second Chicago store in October and an outlet store in Woodbury com/mon in upstate New York, within the next two months. In the recent second quarter, Ugg sales rose 65 per cent to $26.3-million from $15.9-million in the same period last year.