Hoka Hits New Record, Surpasses $420M in Sales — Retail Bum

Deckers saw its Q1 net revenue rise by 10% year over year to $675.8 million, with demand for its Hoka footwear brand driving growth.

Hoka’s net sales hit a new quarterly record, rising 27.4% to $420.5 million. Meanwhile, other Deckers brands, including Sanuk, Teva, and Ugg, reported declining sales.

Overall, Deckers saw its direct-to-consumer (DTC) sales increase by 35.3% to $250.4 million, and wholesale fell from $429.4 million to $425.4 million across its portfolio of brands.

“Deckers begins fiscal year 2024 in a position of strength, accelerating towards our outlook for the full year, which has been raised to reflect Hoka brand momentum,” said Deckers CEO and President Dave Powers. “We remain dedicated to delivering results in alignment with our strategic focus to grow DTC and build our presence within international markets.”

Powers added that the company is focusing on turning Hoka into a multi-billion dollar brand.

Earlier in May 2023, Powers had reported that the company was expecting Hoka sales to hit $2 billion soon and that the brand’s performance was primarily driven by growth in direct-to-consumer (DTC) sales, which had improved by 63% year-over-year (YoY).

While DTC sales are largely contributing to Hoka’s growth, Deckers is also turning to permanent and pop-up stores to drive brand awareness and customer engagement.

“For these reasons, we expect to continue testing potential permanent locations through pop-up stores. We are excited about a couple of new doors that are in the pipeline and look forward to sharing more soon,” Powers said.

Originally published at https://retailbum.com on July 31, 2023.