Deckers Outdoor, the company that owns Hoka jogging shoes, has experienced a sharp rise in its stock price. The share price of this Nasdaq-listed company surpassed $1,000, or about 920 euros, for the first time on Friday. This was a 14 percent increase from its previous day’s price.
The surge in stock price is attributed to Deckers Outdoor’s first-quarter results, which showed an impressive 21 percent increase in turnover to approximately $960 million and an operating profit of around $144 million. This growth was driven by 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, surpassing half a billion dollars in shoe sales this spring.
While specialized shoe brands like Deckers Outdoor are thriving, larger companies like Nike and Adidas are facing challenges due to a lack of innovation. Nike’s share price has fallen by about 15 percent this year, in contrast to Deckers Outdoor’s 35 percent increase. Analysts believe that this trend creates opportunities for new entrants to gain market share in the industry.
Overall, the success of popular brands like Hoka jogging shoes and Deckers Outdoor’s ability to resonate with consumers have contributed to its sharp rise in stock price.
