Hoka’s sales surpassed those of its sister company Ugg for the first time in Deckers history, the company said when it reported its first-quarter tax results.
Source: Hoka
Hoka sneakers brand, famous for its cushioned running shoes, opens its first retail stores on Wednesday as it bets on bricks and mortar to help boost the growth of parent company Deckers.
Hoka president Wendy Yang told CNBC that the shoe maker will open its doors to shoppers at a location on 5th Avenue in New York City’s Flatiron District and a store on Melrose Avenue in West Hollywood. California.
The brand has signed short-term leases at both stores, Yang said, but will likely try to expand the deals.
“We want to learn more directly from the consumer … about what they like, what they want and how their decision-making process works, in an individual way,” Yang said. “The most important thing is to create a conversation with consumers in person and let them experience the benefits [of Hoka] before you buy “.
Stores offer 3D foot scanning devices to help you size. There are also lockers where guests can store their belongings and try on shoes running around the area.
Hoka’s investments are part of a more direct consumer push into the footwear industry, as the Nike brands in New Balance and On Running in Allbirds are closer to their customers. Nike, for example, is withdrawing from failed wholesale channels and investing more in renovating its stores and website. On Running opened its first store in December in New York City’s SoHo neighborhood, expanding its distribution beyond department stores and specialty stores where customers can find their sneakers.
The running shoes business has outperformed other types of sports footwear over the past year and a half, according to NPD Group Senior Industry Advisor Matt Powell. As more dollars are invested in the category, brands like Under Armor and Puma pay more attention to the race than before. Allbirds released a running shoe in April 2020, another vote of confidence in space.
“Until the pandemic, running hadn’t been very good for about eight years,” Powell said. “But there’s no doubt that more people are running. Whenever we’ve been in periods with a lot of people out of work, we always see running shoes or running shoes as an activity come to life.”
Hoka’s latest financial results are proof of change. While the brand also sells sandals and hiking boots, it is known for its wide assortment of running shoes. Hoka’s revenue during the three-month period ended June 30 increased 95% to $ 213.1 million from $ 109 million a year earlier. (Deckers sales increased 78% to $ 504.7 million during the same period).
Hoka’s sales also impressively surpassed those of its sister Ugg for the first time in Deckers history, the company said when it reported its first-quarter tax results.
“Five or six years ago, the only people who bought Hoka were the brokers who knew it,” Yang said. “They were the first adopters to try this crazy new shoe. But now that’s not the case.”
According to Powell, younger consumers are also increasingly buying running shoes as streetwear, not necessarily for running. And that should lead to further growth in the category in the coming quarters, he said.
According to data from the NPD group, sales of running shoes in the United States grew by about a third during the first half of the year. Hoka’s sales increased by about 90%, while On Running’s revenue tripled, the market research firm said.
Deckers shares have risen approximately 47% to date. The company has a market value of $ 11.7 billion.