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Deckers, owner of Ugg, is getting a welcome boost from his brand of more and more popular sports shoes, Hoka.
Susquehanna Financial Group analyst Sam Poser said Tuesday his company's neutral stance on Deckers shares, saying the Hoka brand's momentum, in particular, "is accelerating faster than expected." Susquehanna also raised her price target for the stock from $ 161 to $ 169.
Deckers shares rose more than 4% Tuesday to trade around $ 144 per share. The stock has risen about 45% over the last year.
Hoka, known for its colorful and padded running shoes, was founded in France in 2009 and bought by Deckers in 2013.
It is gaining popularity among young buyers, largely because of its partnerships with up-and-coming retailers such as Engineered Garments and Outdoor Voices to showcase its products as Generation Y.
The partnerships have pushed Hoka further into the category of lifestyle shoes, which has grown faster than performance footwear in the United States. More and more consumers are turning to sneakers, not to go to the gym, but everyday.
Rapper Kanye West – who claims his own line of Yeezy shoes from Adidas – has recently been seen wearing a Hoka boot. The style is immediately sold online.
Susquehanna's Poser said the Hoka brand had a "long track for future expansion".
He said that the "buzz generated by the [Kanye West] The photo was organic and authentic, creating a halo effect for the whole brand. "
Susquehanna estimates that the Hoka brand will surpass the $ 300 million in sales by 2021 and the $ 500 million by 2025. The brand's revenues have increased by about 40% over the past year. last three years. The company relies on Deckers to use its own "Ugg Game Manual" in order to methodically develop the brand and carefully allocate and segment the Hoka product. "
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