Sales are of the ubiquitous comfy boot are finally falling. Has the rest of the world realised what the fashionistas always knew? Plus, we tell you what to do with your old, unfashionable Uggs

It may be an object of derision throughout the fashion industry, but the Ugg boot – a bit like the bootcut jean, or the square-toed office-boy shoes – has refused to die. Over the past 10 years, sales continued to rise, and their squat, solid, shearling-lined shapes became the footwear of young Britons nationwide.

Until now. The newest sales figures from Deckers, the Ugg parent group, are down 31%. While this has been put down to mild weather, and prices of the boots rising, it's a minor victory for fashion. While not defeated – prices will be reduced in a bid to boost sales – its footwear nemesis is showing signs of weakness.

In truth, these signs have been there for a while. Uggs are undeniably comfortable – they're more often worn as slippers in their native Australia – but the ubiquity of them, and their many imitations, has led to overkill. Bad press has been growing. In a survey in 2010, they were voted one of the 10 items men don't like on women and a judge recently ruled they can be dangerous to wear while driving.

They originally gained fashionability in 2001 when they were worn by celebrities including Cameron Diaz, but recent advocates include Joey Essex: hardly an advert for a chic, off-duty look. Rana Reeves, founder of brand agency John Doe, believes this has damaged the reputation of the brand. "I'd say they're in a similar position to when Daniella Westbrook wore Burberry," he says. "They need to go back to basics."

That's certainly not something the brand has been doing recently. Instead, expansion has been the policy. With sales increasing by as much as 67% in one quarter of 2009, confidence has been understandably high – and has led to some questionable ranges appearing alongside the classic boot. The firm has expanded into high-heeled styles with price points over £300, handbags, and even a bridal collection. It might be a case of one spongy step too far. "Ugg's core product is seasonal," says Honor Westnedge, senior retail analyst at Verdict Research. "While it has tried to diversify into new ranges, these have struggled to achieve the same level of popularity as its winter boot collections."

Westnedge points to the relatively high price of Uggs as a problem, "in a period of limited discretionary spending", and suggests that consumers are unlikely to buy more than one pair. There's also the issue that they may simply be out of vogue. New competitors in the boot market include Hunter, Le Chameau (the brand favoured by the Duchess of Cambridge) and, recently, Converse. In contrast to Ugg, Hunter has seen its profits rise – 38% last year – and style leaders from Kate Moss to Sarah Jessica Parker wear its boots. Reeves believes its success is down to a savvy marketing policy. "They stay true to what they are," he says. "They're functional, they keep your feet dry. Hunter have done some collaborations but they have never tried to be fashion. That's what Ugg did, and that's where they went wrong." Fashion has long rejected Uggs – it looks like the rest of the populace is finally following its lead.

Five uses for an old Ugg boot

1. Crap gloves Uggs are only unfashionable on your feet. Stroll around with them on your hands and people won't know what to think.

2. Insulation Got an uninsulated pipe about the size of your shin? Whack an Ugg on it. Problem solved.

3. Weasel beds Most weasels find their beds cold and uncomfortable. Let's do something for them, guys.

4.Fashionista repellent A single scrap of Ugg boot worn on a lanyard around the neck will keep away all but the most foolhardy fashion snobs. Win.

5. Safer throwing boots Tired of accidentally braining a six-year-old when you hurl your wellingtons across the park? Softer equals safer.

Tom Meltzer