Poms are born with wonderfully fluffy coats of fur; this is one of the features that makes this dog breed so amazingly special and unique. There is a brief interruption where the fur will fall out. This is only temporary; once the adult coat comes in, you will have your ball of fluff back. The Puppy Uglies is simply a stage that all Pomeranian dogs go through as they are growing. Just as humans enter different stages of growing, this is a phase in which your Pom is losing its baby fur. The "Uglies" will be the stage in which the baby fur is gone, but the adult fur has yet to grow in. The phase will end when the adult fur has fully grown in.
A Pom puppy is born with just one coat of fur. It is soft and so heavenly smooth. After the Puppy Ugly stage is done, the Pomeranian will have its adult 2 coats of fur: undercoat and overcoat. The undercoat will be short and thick, the overcoat will be longer, soft and gorgeous.