The maker of trendy footwear brands Hoka and UGG saw its shares soar more than 10% Friday after the shoemaker raised its annual forecast — betting on strong demand for its sneakers and boots during the crucial holiday season.
Deckers’ Outdoors, along with brands from New Balance and Roger Federer-backed On, has seen sales soar as chunky sneakers and fuzzy winter boots gain popularity.
Hoka — known for its lightweight, cushioned running shoes — and On have dug into Nike’s market share. The legacy shoemaker has already suffered a hit to its business as customers turn away from the company’s high prices and outdated shoe designs.
Meanwhile, Deckers on Thursday reported a nearly 35% jump in Hoka sales to $570.9 million.
The company said UGG sales grew 13% to $689.9 million.
“DECK continues to deliver strong results in an uncertain macro operating environment, speaking to its strong market position with a healthy brand portfolio that can continue to drive growth longer-term,” Dana Telsey, analyst with Telsey Advisory Group, said.
Hoka’s brand has benefited from the rise in running clubs, carving out more shelf space at Dick’s Sporting Goods and Nordstrom.
“The company is executing well in driving brand heat and elevating global brand awareness and view higher marketing investments as an important strategic decision that should continue to support top line growth,” Joseph Civello, analyst with Truist Securities, said.
Deckers raised its annual sales expectations to a 12% rise to $4.8 billion, above its previous forecast of a 10% rise to $4.7 billion.
Deckers reported a net sales increase of 20.1% to $1.3 billion, beating expectations of $1.2 billion.
The company reported adjusted profit per share of $1.59, above estimates of $1.23.
“HOKA and UGG produced outstanding second quarter results driven by strong consumer demand for our innovative and unique products,” Deckers CEO Stefano Caroti said in a statement. “Our dedicated teams’ continued execution of Deckers long-term strategy has our company well-positioned to achieve an increased outlook for fiscal year 2025.”
With Post wires