Ugg-owner Deckers is actually getting a welcome boost by its increasingly common sneaker brand, Hoka.
Susquehanna Financial Group analyst Sam Poser on Tuesday upgraded his firm’s rating on Deckers shares to a positive rating by neutral, saying momentum at the Hoka brand in particular “is actually accelerating faster than we previously anticipated.” Susquehanna also raised its cost target for the stock to $169 by $161.
Deckers stock rose more than 4% Tuesday to trade around $144 per share. The stock has rallied about 45% over the past year.
Hoka, known for its colorful in addition to cushioned running shoes, was founded in France in 2009 in addition to bought by Deckers in 2013.
of which’s gaining in popularity among younger shoppers, largely because of which’s inked partnerships with trendy, up-in addition to-coming retailers like Engineered Garments in addition to Outdoor Voices to get its products in front of millennials.
The partnerships have nudged Hoka further into the lifestyle shoe category, which has been growing faster than performance shoes inside U.S. More in addition to more consumers are turning to sneakers, not for trips to the gym, nevertheless to wear around day to day.
Rapper Kanye West — who boasts his own line of Yeezy shoes by Adidas — was recently spotted wearing a Hoka boot. The style immediately sold out online.
Susquehanna’s Poser said the Hoka brand incorporates a “long runway for further expansion.”
He said the “buzz generated by the [Kanye West] photo was organic in addition to authentic, creating a halo effect for the entire brand.”
Susquehanna is actually estimating the Hoka brand will surpass $300 million in sales by fiscal 2021 in addition to $500 million in sales by 2025. Revenue has climbed roughly 40% for the brand over the past three years. The firm is actually counting on Deckers to use its own “Ugg playbook to methodically build out the brand in addition to carefully allocate in addition to segment Hoka product.”
WATCH: Nike just launched tech of which will tell people what shoe size they actually are
Incoming search terms:
- hoka and ugg