"If boots are actually out of style, Ugg will have just have to wait for the fashion cycle to turn around."
Um... what? Sounds like an excuse to me. Women will always want to keep their legs dry in winter and fall. Period. That means boots... the fact that they aren't making appealing boots doesn't mean that all boots are out of fashion, sheesh!
As far as rugged boots go, I think their problem is that the designs aren't as interesting or trendy as, say, Timberland, Frye, or even Born. They used to rely on the It Boot style status, but now they need to get the creativity going.