Hoka Reaches $2 Billion Yearly Sales Milestone as Company Execs Focus on International Growth
CREDIT: Courtesy of Hoka
Hoka remains in the spotlight as Deckers Brands declares a major milestone for its star running brand.
Stefano Caroti, president and chief executive officer of Deckers Brands, told analysts on the company’s second quarter earnings call on Thursday that Hoka eclipsed $2 billion in revenue over the trailing 12-month period for the very first time.
“With this impressive first half growth, the Hoka brand achieved an exciting milestone,” Caroti said. “I’d like to congratulate our entire global team for their tireless efforts in building the special brand.”
With this significant milestone in hand, the CEO added that Hoka’s ongoing international growth efforts will remain a priority. “We’re globally driven, aiming to diversify and build international markets for a more balanced business, expanding regionally and strategically through various channels,” Caroti noted.
Digging deeper, the executive noted that in the long-term, he’d like to see a 50-50 split in sales between the U.S. and international business segments. “International is between two and three years behind the U.S.,” the CEO noted. “We’ve adopted the same playbook internationally that has been so successful here [in the U.S.]. There’s plenty of upside for us internationally, across all regions from China to Europe.”
Hoka’s international expansion really started to ramp up last year. In October 2023, Hoka planted its flag in Europe with its first boutique in London’s Covent Garden neighborhood. At the time of the opening, Caroti, said in a statement that London is “arguably the most influential athletic lifestyle footwear market in the world” and is a “critically important market” for the brand.
In May, Hoka followed up its London success with a new store in Paris ahead of the summer Olympics, which drove major awareness in both cities.
“Global consumers who identify as runners remain our highest awareness group and continue to see strong increases, but we are also seeing really powerful growth among consumers who are more fitness oriented,” now-retired CEO Dave Powers said in May. “While Hoka is increasing its awareness across all age groups, growth is strongest among 18- to 34-year-olds globally with brand awareness among this influential age group nearly doubling year-over-year.”
This comes as the Goleta, Calif.-based Deckers Brands reported net sales in the second quarter of fiscal 2025 increased 20.1 percent to $1.3 billion, compared with $1.1 billion the same time last year. Net income in the period was $242.3 million, up from $178.5 million in the same year-ago quarter.
“Overall, Decker’s first half results demonstrate our team’s execution around the globe,” Caroti added on Thursday’s call. “Our brands are well positioned for the holiday season and on track to achieve an increased outlook for the full fiscal year.”
Looking ahead, Deckers raised its guidance for the year. The company now expects net sales for the full fiscal year 2025 to increase 12 percent to $4.8 billion. This is up from its previous guidance, which predicted sales for the year to rise 10 percent to $4.7 billion.