As a shareholder of Dykes, Hongshan Capital stated last month that the company’s shares have performed poorly in all major indexes over the past three to five years and urged Dexters to seek outside acquisitions.
Another active investor, Marcato Capital, also said in February that it intends to discuss with Decker the future development strategy and direction of the company.
Hongshan owns 3.3% of the U.S. outdoor apparel brand, while Marcato owns 6% of Dykes.
As the most famous brand of Dykes, UGG snow boots, which are popular in U.S. cities, university campuses and shopping malls, have increased in sales from US$37 million in 2003 to US$1.52 billion in 2016.
However, recent growth has slowed, and the market value of Dexter has fallen by one-third since the end of 2014. Affected by the weak sales of UGG and Sanuk brand, the company reported that its third-quarter profit was also lower than expected in February, and cut its 2017 revenue forecast.