The stock price of Deckers Outdoor, the company that owns Hoka jogging shoes, has seen a sharp rise in value. On Friday, the share price of Deckers Outdoor surpassed $1,000 (approximately 920 euros) for the first time, marking a 14 percent increase in a single day. The company attributed this surge to its strong first-quarter results, which showed a 21 percent increase in turnover to approximately $960 million and an operating profit of around $144 million.
Deckers Outdoor has two strong brands, Ugg and Hoka, that resonate well with consumers. Hoka, known for its sneakers, experienced the highest growth in net sales within the company, with a 34 percent increase compared to the previous year. This made Hoka the group’s most profitable brand and helped it surpass half a billion dollars in shoe sales this spring.
While larger companies like Nike and Adidas are facing challenges due to a lack of innovation, specialized shoe brands like Deckers Outdoor are thriving. Analysts believe that this trend creates opportunities for new entrants to gain market share in the industry. In contrast to Deckers Outdoor’s 35 percent increase this year, Nike’s share price has fallen by about 15 percent.
Overall, the rise in stock price for Deckers Outdoor reflects the success of its popular brands like Hoka jogging shoes and the company’s ability to resonate with consumers in the current market landscape.
