Deckers Outdoor-owned Hoka One One, which generated 64 percent global sales growth in the third quarter to $93 million, will launch an apparel test in the U.S. market this quarter as its development teams continue to focus on evolving the brand’s footwear business.
Dave Powers, president and CEO of Deckers, said Hoka One One has “a lot of runway still within just footwear.” However, he added during a call with analysts, apparel and gear will be part of the brand’s growth plan for the next three to five years. The most immediate topline objective for Hoka is to surpass $500 million in annual sales.
During the third quarter, Hoka’s Clifton and Bondi styles continued to gain market share in the U.S. run specialty channel as the brand introduced an updated Speedgoat 4, its flagship trail running style. Hoka was the No. 2 brand in dollars sold over Summer 2019, according to NPD retail research, and has maintained the position every month since.
The brand doubled its number of online consumers in the third quarter, particularly in the 18-34 age group. Through the first six months of FY20, the brand generated nearly 39 percent of its $256.7 million in revenues from the direct-to-consumer channel.
With its reporting of third quarter results last week, DECK raised its FY20 topline outlook to a 6 to 7 percent increase over FY19, with Hoka’s fourth quarter sales projected to increase “in the high 40 percent range.”