How do you keep a hot brand hot? That’s no small feat, but footwear industry veteran Robin Green is up to the task.

When Green joined the Deckers Brands-owned Hoka in February as president, she was tasked with expanding the brand’s relationship with consumers and athletes — and accelerating the product innovation pipeline.

“What’s been amazing about this experience so far has been connecting with the Hoka team, the employees within the organization, the leadership across Deckers and seeing how the brand connects with people on such a personal level,” Green told FN in early October. “The stories and emails we get from consumers are inspiring. This brand has really changed some people’s lives.”

The numbers tell the story. For several quarters, Hoka has been steadily increasing its market share in the competitive athletic footwear market. Hoka wrapped up fiscal 2024 earnings in May with net sales of $1.807 billion, a 27.9 percent increase from $1.413 billion in 2023. And in its most recent earnings report in October, momentum continued as the brand reported net sales of $570.9 million for the second quarter of fiscal 2025. That’s up 34.7 percent from $424 million in the year-ago period.

Wall Street is confident Hoka’s winning streak will remain a top driver for Deckers’ overall business.

“There continues to be significant growth avenues within the sporting goods [channel], among better independents — and, carefully, within athletic specialty distribution channels. Further, the international opportunities remain robust,” Williams Trading analyst Sam Poser wrote in a note last month.

Green, who most recently spent 17 years at Nike, understands the challenges that can arise with rapid expansion.

“Sometimes growth can overshadow that important relationship with the consumer and with the community,” she said. “We always want to be a brand that welcomes everybody. So that’s something I want to stay on top of, making sure … we always stay humble.”

Strengthening Wholesale

On the company’s first-quarter earnings call in July, Deckers Brands’ president and chief executive officer Stefano Caroti dubbed fiscal 2025 “a year of wholesale growth” for Hoka, adding that the star running brand is seeing an expansion of both shelf space and new doors within the segment this year.

Caroti also noted on the call that some of the retailers expanding Hoka distribution are Dick’s Sporting Goods, Foot Locker, Intersport in Europe, Top Sport in China, Sport Chek in Canada and JD Sports in the U.S., Europe and Asia.

This emphasis on wholesale growth was visible in the second quarter of fiscal 2025, with Hoka bringing in $362 million in sales in the business segment, a 37.7 percent increase from the same time last year.

Green — who had a front-row view of Nike’s wholesale missteps — sees retail partners as the “absolute center” of the business strategy. “We have incredible partners in terms of positioning and authenticating our brand across different channels. [In the future], they will play an important role in terms of how we grow Hoka, both in the U.S. and internationally,” Green said.

Hoka’s core run specialty business is also central to the company’s overall strategy.

“We have established credibility in a really personal way,” Green noted. “Whether it’s through activations at a community level, or how we look to enhance our storytelling and innovation launches going forward, [these retailers] play a critical role in that mix.”

Looking forward, both larger retailers and specialty accounts are equally important to Hoka’s success, Green insisted.

“I wouldn’t say that one is equal or less than the other. It’s just the relationship and engagement models are different. How we activate from a community and in-store standpoint is different between a run specialty account and a Dick’s Sporting Goods, as an example. Both play important roles in terms of allowing us to reach a broader range of consumer and get the product on the feet of people in an authentic way.”

The Global Agenda

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 Olympic Games, which drove major awareness in both cities, according to Dave Powers, the then-president and CEO of Deckers Brands.

“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,” the now-retired 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.”

Expect to see more stores like the ones in London and Paris as Hoka charts its path abroad. Green said that both Europe and Asia will play an important role in this next chapter of growth.

“We see a lot of upsides in these markets. The brand awareness is growing incredibly fast. We’re seeing a lot of exciting adoption on both fronts. So for the next couple years, international is where we’ll be looking to put a lot of focus and energy,” Green said.

One of the biggest lessons learned so far? Don’t be afraid to build out a flagship-size footprint where needed.

“The appetite for the brand is so high that our stores are all beating plan,” Green said. “Initially, we wanted to be strategic and not go too big too soon. But what we’re finding is the consumer interest in adopting the brand is moving so fast that we, in theory, could potentially look at some slightly larger spaces that allow for higher sales velocity, more product in-store and potential category expansion within the stores.”

What’s Next

Turning to the future, Green said there is a lot about Hoka that she hopes stays exactly the same.

“At the same time, we will continue to ‘zig’ when the industry ‘zags’ and do something completely different than people expect from us,” she said.

But one thing is clear: Hoka will continue to be itself.

“You don’t have to be an elite athlete, you don’t have to be a certain body type or fit into a specific mold. It really is a brand where everybody feels welcome to bring their most authentic self — whether you’re a walker or a runner or a hiker,” Green said. “We welcome everybody. And that just opens the door for people to feel like they can try something new.”

Looking ahead, Green is excited for the places Hoka will go. “We have an incredible runway ahead of us. We’re all extremely energized around where the brand is currently positioned, and where the brand is headed,” she said.

Nearly a year after Deckers Brands announced its intention to divest Sanuk, the outdoor lifestyle shoe brand has officially been scooped up by Canadian active company Lolë Brands.

Terms of the deal, which closed on Aug. 15, were not disclosed.

According to Todd Steele, chief executive officer of Lolë, when the company heard that Deckers was selling Sanuk, it “jumped” at the opportunity.

“We think there are a lot of common themes between our two brands, from sustainability to creativity to the importance and connection to community,” Steele told FN in an interview. “We also think Sanuk can benefit from our global perspective since a large part of our business is done outside of the U.S.”

Steele said there is potential to expand Sanuk’s consumer base as well as its core product assortment. The CEO hopes that with renewed investment in the brand, Sanuk’s wholesale partners will discover the brand’s evolution, which includes a nimble and progressive approach to marketplace management and customer service.

“We’ve got a creative design team in Montreal and San Francisco that are excited to start collaborating on a whole new product category, as we haven’t participated in the footwear market in the past,” Steele added. “The chance to see Sanuk be an innovator in that area is exciting to all of us.”

To help execute this strategy, Lolë brought on Deckers and Sanuk veteran Katie Pruitt as the brand’s new vice president and general manager. Prior to the acquisition, Pruitt served as Sanuk’s brand manager at Deckers since 2022. Other roles she’s held at the company included product director, senior manager of product development innovations and footwear product development manager, among others.

In her new role, Pruitt told FN that she will oversee all strategic planning and execution of operations as well as the brand teams. This includes a focus on evolving the brand strategy and prioritizing direct-to-consumer and wholesale customers to drive innovation and growth.

“I’ve been with Sanuk for over a decade and had a chance to work on many sides of the business,” Pruitt said. “I also had the privilege of working with Sanuk founder Jeff Kelley and some of the other people that have built this brand. I’ve always been really inspired by their passion, and this has prepared me to carry forward their legacy and embrace this new opportunity.”

In the coming months, Pruitt said that Sanuk will relocate its operations and open a new office in Los Angeles, Calif. “We just signed a lease for an office, so we’re hoping to get that up and running in the next month or so,” she told FN.

Under its new owner, Pruitt noted that Sanuk has kept on its sales team to ensure continuity in its wholesale partnerships as well as a few other members that will relocate down to L.A. from the Deckers office. “We are starting to build a team in the L.A. area, and it will be pretty much a whole new team,” Pruitt said. “We are going to rely on Lolë to support us through this transition, but eventually we’ll mostly be operating independently.”

This acquisition marks the second for the privately-held Lolë in the past year, as it expands its portfolio of environmentally conscious consumer brands. In April 2023, the company purchased San Francisco-based sustainable fashion retailer Époque Évolution for an undisclosed sum.

Sanuk (which means “fun” in Thai) was founded in 1997 by entrepreneur Jeff Kelley, whose first product was a sandal made of green indoor-outdoor carpet.

Deckers Brands purchased Sanuk in 2011 for $120 million. In stark contrast to the company’s star Hoka and Ugg labels, Deckers hasn’t been able to turnaround the beleaguered surf shoe brand for quite some time.

In its first quarter earnings report out last month, Deckers noted that Sanuk reported a 28.4 percent drop in net sales to $6.9 million in the period compared to $9.6 million last year. It was also during its July earnings report where the company disclosed it had found a buyer for Sanuk. No other details were provided at the time, but the notice followed the company’s announcement in October that it was seeking to divest the label.

In October, outgoing Deckers chief executive officer Dave Powers told analysts that the decision to divest Sanuk was tough both “emotionally and financially,” but that the brand deserves “a good home” and someone who can “make it a priority” instead of being the fourth and fifth brand in Deckers portfolio. “I think it’s the best thing for the company and the brand to do this,” the exec said at the time.

Hoka is bringing its origin story to life with its newest campaign film.

Called “Bird’s Eye,” the Deckers-owned performance brand’s new campaign brings the viewer on a journey to where it all started – the French Alps. The spot features captivating aerial point-of-view shots that helps tell the story of a bird soaring alongside road and trail runners.

“Together, they embark on an epic journey, descending from the mountain top to the roads below, capturing the spirit and determination of every runner,” the company said in statement. “This story of joyful flight is a testament to the power of community and movement – we fly higher, run faster, and go further – together.”

This latest fall 2024 campaign was created in partnership with its creative agency of record, Anomaly, and is part of Hoka’s “Fly Human Fly” ad franchise that launched in 2022.

“Bird’s Eye” will run on television, digital retail, owned media, out-of-home and paid social on Meta, Snapchat and TikTok throughout the fall 2024 season.

This campaign comes as the hot running brand continues to expand its store footprint. Last month, Hoka opened the doors to its new home in New York City – a 9,000-sq.-ft. store at 579 Fifth Avenue.

In May, Hoka landed in Paris ahead of this summer’s Olympic Games. Located at 35 Boulevard des Capucines in the buzzy Opéra neighborhood, the 1,500-sq.-ft. store marks Hoka’s first shop in France and showcases the brand’s full line up of footwear, apparel and accessories.

Deckers wrapped up fiscal 2024 on a high note in May, with net sales increasing 18.2 percent to a record $4.288 billion for the year. At Hoka, the company reported that the brand’s net sales in fiscal 2024 rose 27.9 percent to $1.807 billion, up from $1.413 billion in 2023.

As for fiscal 2025, Deckers is optimistic that Hoka will remain the main driver of growth across the company. The company said that it expects Hoka’s net sales to increase 20 percent over fiscal 2024 next year through consumer acquisition and retention gains in its direct-to-consumer channel, expanding strategically through key partners while maintaining disciplined marketplace management and maintaining a dedicated focus on growing awareness and market share internationally.

Deckers Brands president and chief executive officer Dave Powers believes the best work is done when you’re relaxed and comfortable. That philosophy plays out even with what he wears in the office.

“I go to work in a baseball hat and slippers,” the exec said with a laugh Tuesday afternoon in New York City at the day-long FN Summit. Powers was joined in conversation titled “How Culture Empowers Brands” by FN senior editor Stephen Garner.

Powers offered valuable lessons on creating a positive culture at Deckers, which owns the red-hot Hoka and Ugg brands, among several others. The exec stated he believes the culture at Deckers has been critical to its success.

“Everybody should feel welcomed, heard, seen, empowered and cared for,” Powers said. “It’s amazing to see employees react to that kind of environment and how they protect it once they have it. They truly come to work being themselves. You don’t have to change who you are when you walk through the door at work.”

He continued, “It empowers teamwork, collaboration, trust and when you’re truly your most relaxed and comfortable is when you truly do your best work.”

Creating an exceptional culture at Deckers was intentional, Powers explained, and was largely the result of experiences he had during his earlier retail and footwear industry days, when he hated workplace culture.

“I truly loved the work, but I went to work every day with a knot in my stomach,” Powers said. “There was judgement, you had to dress a certain way, act a certain way, there was competition, it was political. I used to feel like I wasn’t performing at my best because I was so [uncomfortable] so much of the time.”

That company culture is especially important when adversity or exceptional hate in the world is present. Powers explained how it came into play when the company felt backlash for its Pride Month efforts.

“As a public company, you have to have your financial house in order before you can have a voice in society, so to speak. If I started talking about the environment or diversity and the business is struggling, I wouldn’t be here. So the first thing is get your house in order,” he said. “The second things is know who you are, who your brands are, who your consumers are and what you stand for. Then you have the confidence and the foundation to share your values.”

He continued, “We embrace diversity with all of our brands, we focus a lot of energy on the environment, and we’re not vocal about it, we’re a humble company, but we stand in front of it. When I get an email that’s hateful or wants to boycott the brand because of something we did, it doesn’t bother us. If you don’t like the brand or what we’re doing, that’s fine. Shop somewhere else. We’re not going to be swayed by those kinds of emails or being exposed to those kinds of things.”

About the Author

Peter Verry is the Senior News and Features Editor for Athletic and Outdoor at Footwear News. He oversees coverage of the two fast-paced and ultracompetitive markets, which includes conducting in-depth interviews with industry leaders and writing stories on sneakers and outdoor shoes. He is a lifelong sneaker addict (and shares his newest purchases via @peterverry on Instagram) and spends most of his free time on a trail. He holds an M.A. in journalism from Hofstra University and can be reached at peter.verry@footwearnews.com.

The Deckers-owned Hoka brand made its mark as a premium footwear option for the running community. But now, Hoka’s lifestyle appeal is driving a new wave of growth for the brand.

In a call with analysts last week, Deckers’ chief executive officer Dave Powers discussed Hoka’s evolution from a shoe for hard-core runners to a brand being adopted by people outside of the sport.

“There’s no doubt we are a performance innovation-driven company,”  the soon-to-be retired CEO said. “But we obviously have been adopted in a pretty substantial way from a lifestyle perspective. And that’s because of the performance that’s built into the product. It’s not just that they look good, but they feel good.”

According to Powers, this phenomenon is part of a larger trend taking place within fashion and running.

“I believe there’s a generalized trend out there that running is kind of becoming the new streetwear, Powers said. “Those looks are adopted by more consumers now than they ever have been, and we see that continuing. And we welcome those consumers into the brand, but they will be buying performance product from us, not lifestyle design products.”

Indeed, Hoka as well as its competitor, On, is increasingly gaining market share across various demographics, especially teens, as consumers opt for more comfortable shoe options in their daily lives.

“The pandemic may have fueled the more casual trend but it’s now acceptable to style your outfit with a cool running shoe like a Samba, On or a Hoka running shoe,” explained Liza Amlani, principal and founder of consulting company Retail Strategy Group. “Function over a fashion has taken over.”

Staying true to performance

According to Jane Hali & Associates analyst Jessica Ramirez, Hoka had cemented its presence in fashion even prior to the pandemic when in 2019, it launched a collaboration with fashion streetwear brand Opening Ceremony.

“They were tapping into the very early days of a chunky shoe,” Ramirez said of Hoka. “And it was the first brand within the running category that started tapping into the fashion-forward consumer.”

Hoka’s basis in fashion, Ramirez said, eventually matured during the running boom in the pandemic, reaching runners more broadly and then expanding even more to the lifestyle crowd.

But despite its popularity outside of running, Hoka isn’t necessarily leaning into more lifestyle sneaker designs, something the performance-rooted Under Armour is trying to do to increase its footwear appeal. Instead, it’s sticking to its classic performance running styles and price range while occasionally offering a new colorway or an updated upper. Powers said this strategy helps drive demand among consumers who feel that “they need the product. They need the next color. They need the next version of the Bondi, the Clifton, the Arahi and now the Mach,” he said.

As Williams Trading analyst Sam Poser explained it, Hoka isn’t trying to create a full-fledged lifestyle shoe business.

“They are keeping their core and then updating — basically changing the uppers mostly — to create [lifestyle options],” he said. “But performance is the underlying thing going on.”

As such, Hoka’s evolution into lifestyle can be understood as a result of more people adopting it outside of athletics, not because of an intentional decision to enter this category. Adidas experienced a similar effect when it launched the Ultraboost, which started its life as a performance running shoe, Poser said.

“It failed miserably [when it came out], Poser said of the Ultraboost. “Then it got picked up as fashion and all of a sudden, it’s a lifestyle shoe.”

The idea of consumers opting for performance based footwear as a lifestyle option was also previously noted by executives at On Holding as well. Last May, On’s co-CEO Marc Maurer told FN in an interview that the brand’s performance emphasis is appealing to a wide audience. “We feel we are cool because we’re rooted in performance,” Maurer said at the time.

Still, Hoka is not losing sight of the running community that defines its brand DNA.

“I can guarantee you that we will always prioritize our performance business first,” Powers said in the call to analysts. “We’ll always prioritize the specialty run accounts and we will always prioritize the hard core running and trail-running consumer.”

Shares for Deckers Brands are up Thursday, just one day after the company’s stock took a hit following an analyst downgrade.

On Wednesday, Truist Securities analyst Joseph Civello issued a note downgrading the Goleta, Calif.-based footwear company from “buy” to “hold” on concerns over a direct-to-consumer (DTC) sales slowdown at Decker’s star Hoka brand. The note caused Deckers’ stock to dip nearly 8 percent on Wednesday but it has since recovered.

In his note, Civello wrote that Hoka’s DTC growth decelerated in mid-February and remained softer through March. As a result, Truist lowered its DTC revenue forecast for Hoka to approximately $190 million in the fourth quarter, with 25 percent sales growth, down from approximately $210 million, with 40 percent year-over-year sales growth.

“We note that other companies who have significantly outperformed since the pandemic have recently identified some slowing demand trends, and we think Hoka is facing similar pressures as it laps extremely robust comparisons,” Civello wrote. “While we remain bullish on the brand’s longer-term opps, we think it may take more time to digest this growth, especially in a potentially softer discretionary spending environment.”

Despite this uncertainty from Truist, the analyst added that Hoka remains a favorite in the wholesale channel and its key franchises continue to top best-seller lists, especially Clifton and Bondi, Civello noted.

On the other hand, Civello added in the note that Ugg’s DTC business has “meaningfully outperformed expectations” in the same period, which may help to offset the slowdown at Hoka. As such, Truist estimates that DTC sales for Ugg will increase 35 percent to $247 million in the fourth quarter, up from its previous estimate of $198 million with an 8 percent growth.

“While Ugg products are resonating extremely well with consumers and we believe its brand heat remains underappreciated, we expect growth to moderate as the segment lap fiscal year 2024’s outstanding growth,” Civello wrote. “We previously expected outsized growth from Hoka to drive more beat and raise potential but are more cautious about that opportunity given the recent softness we have seen in Truist Card Data trends.”

Still, Truist and Civello are still confident in Deckers’ performance going forward. “We think Hoka and Ugg both have meaningful long-term growth opportunities and continue to view Deckers’ management team as top-tier,” the analyst wrote. “That said, Deckers is up approximately 75 percent since October 26, 2023, due to largely Ugg-driven beats in the second and third quarters versus the S&P 500’s approximately 25 percent gain over that period.”

This comes after Deckers Brands reported in February that net sales in the third quarter of 2024 increased 16 percent to $1.560 billion compared to $1.346 billion the same time last year.

By brand, Hoka saw the largest increase in sales in the third quarter, reporting a 21.9 percent rise to $429.3 million compared to $352.1 million in Q3 2023. Ugg also continued its winning streak in the period, posting net sales of $1.072 billion, a 15.2 percent increase from $930.4 million last year.

As competition in the running market continues to heat up, Hoka is looking to a veteran Nike executive to take the brand to the next level.

Deckers Brands, the parent company of Hoka, announced on Monday that it has hired Robin Green as president, effective immediately. Green will serve on the company’s executive leadership team and report to Deckers Brands chief executive officer and president Dave Powers.

In her role, Green will focus on delivering continued growth at Hoka, expanding on consumer and athlete connection and and accelerating the product innovation pipeline. The announcement comes one week after Deckers reported its biggest quarter in history, driven by Hoka’s 21.9 percent sales increase in the third quarter.

“Robin is a strong leader with a demonstrated ability to develop and execute on multi-year strategic, growth-driving initiatives for global performance businesses, and I am eager for her to leverage that expertise as part of Deckers,” Powers said in a statement. “Hoka is in its strongest position to date and I am confident in our ability to continue its positive momentum with Robin at the helm. Together, we will focus on continuing to expand consumer awareness of Hoka, maximizing and scaling our product offerings and accessibility, and eclipsing the exceptional revenue milestones hit over the last year.”

Green is an athletic industry veteran. Prior to joining Hoka, she held several leadership roles at Nike during her 17 years with the company, most recently serving as its global VP and GM of men’s running and fitness. Before Nike, Green was a manager and buyer at Fleet Feet for four years.

“I am thrilled to join Deckers and lead the dedicated Hoka team to further unlock the potential of this outstanding brand. Hoka is delivering market share gains and record results at unparalleled levels for our industry, and we will continue to execute on the incredible growth opportunities ahead,” Green said in a statement. “I am confident in our ability to build on the Hoka brand’s commitment to product innovation excellence, capitalize on our growing global consumer demand and brand loyalty, and optimize for marketplace management and growth.”

Green’s hiring comes less than two weeks after Powers announced he will retire on Aug. 1. Deckers confirmed Stefano Caroti, the company’s chief commercial officer, is slated to take over for Powers upon his retirement. Caroti, who began his career at Deckers as its president of omnihannel, most recently served as its chief commercial officer and interim president of its Performance Lifestyle division, which includes Hoka.

About the Author

Peter Verry is the Senior News and Features Editor for Athletic and Outdoor at Footwear News. He oversees coverage of the two fast-paced and ultracompetitive markets, which includes conducting in-depth interviews with industry leaders and writing stories on sneakers and outdoor shoes. He is a lifelong sneaker addict (and shares his newest purchases via @peterverry on Instagram) and spends most of his free time on a trail. He holds an M.A. in journalism from Hofstra University and can be reached at peter.verry@footwearnews.com.

It’s becoming harder and harder for average Americans to envision retirement by 65. Yet two top footwear C-suite executives made waves last week when they announced their decisions to leave the workforce well before that age.

Crocs on Feb. 1 revealed that its 55-year old president Michelle Poole would retire in May. That same day, Deckers Brands announced that its president and chief executive officer Dave Powers — who was listed as being 57 years old in a July 2023 Proxy statement filed with the Securities and Exchange Commission — would retire in August.

The exit of these two leaders — both coming several years in advance of the typical retirement age — is not necessarily representative of the norm. The average age of retiring CEOs has remained consistent since 2010, between the ages of 62 and 65, according to January data from executive outplacement firm Challenger, Gray & Christmas. But when it comes to CEO exits for all reasons, including retirement, data shows that these leaders are exiting their posts at younger ages than ever before. The average age of a CEO leaving his or her post in 2023 was 56, down from an average age of over 63 in 2017, Challenger, Gray & Christmas found.

In the case of Crocs and Deckers — two companies that have done extraordinarily well in recent years — the sudden departure of these younger executives at the top of their games might represent a calculated effort to set themselves up for future success.

“You want to go out with a bang,” explained Jane Hali & Associates analyst Jessica Ramirez. “You leave with a legacy.”

And while the executives might have used specific language around retiring, they could always come back into the industry for the right C-suite role or board position, Ramirez said.

“When we look at appointments, we always consider what their background is and where they were successful,” Ramirez said. “For a brand that might need help, [their track records] are going to be looked at as a positive.”

In addition to setting themselves up for future success, CEOs leaving the role at younger ages could also be a result of generally high turnover in the role. Challenger, Gray & Christmas also found that 1,914 CEOs left their posts in 2023, which was up 55 percent from 2022 and marked the highest number of exits on record since the firm began tracking this data in 2002. In the shoe industry, there were 76 C-level appointments in 2023, according to executive search firm Kirk Palmer & Associates. Notable 2023 shoe CEO exits included Wolverine Worldwide’s Brendan Hoffman, Academy Sports + Outdoors’ Ken Hicks and Macy’s Inc.’s Jeff Gennette.

Broadly, these large moves have been result of a retail industry and economy in flux since the pandemic.

“Historically, we’ve seen large economic shifts preceded by a surge in CEO exits,” said Andrew Challenger, workplace expert and senior vice president of Challenger, Gray & Christmas, Inc in a statement.

At the same time, the changing expectations — and pressures — on top business leaders could also contribute to a CEO’s desire to bow out of a role earlier than before.

“There is a spotlight on these leaders, and although they have always been held accountable for the success or the struggles of a brand, more people are watching,” said Liza Amlani, principal and founder of consulting company Retail Strategy Group. “This is added pressure for leaders to drive profitability. Times are changing and leaders like Michelle Poole of Crocs are choosing to leave on a high note.”

Additionally, Amlani noted that the desire to prioritize mental health, which has become more common amid discussions of work-life balance in a post-pandemic world, could also be a factor in CEOs deciding to step down from the helms from successful — or struggling — companies.

“This was never considered an option a decade ago,” Amlani said.

On Nov. 29, Hoka will be honored with the Brand of the Year award at the 37th annual FN Achievement Awards. Below is an article from the magazine’s Nov. 27 print issue about why the hot running brand is doing so well.

Hoka’s winning streak is showing no signs of slowing down.

Since Deckers acquired the running brand in 2012, Hoka has continued to see skyrocketing growth. That success became even more pronounced in the pandemic. And for fiscal 2023, Hoka crossed the billion-dollar mark, with sales totaling $1.41 billion, up 58.5 percent from the prior year’s $891.6 million. In its most recent second quarter, Hoka posted net sales of $424 million, up 27.3 percent from the same period the previous year.

To Deckers Brands CEO Dave Powers, Hoka has the runway to grow into a “multibillion-dollar performance brand,” he told analysts in a call in October. To do that, Hoka will innovate within core performance categories and explore long-term opportunities in apparel, the exec told FN via email.

“We believe Hoka can continue to excite its existing consumer base, while attracting new consumers with compelling product that creates emotional connections and experiences with our brand,” Powers said.

Here are five reasons Hoka has been so successful, according to analysts and brand leaders.

Rooted in purpose — and performance product

Stefano Caroti, chief commercial officer at Deckers, explained that Hoka’s popularity can be attributed to its original mantra from 2009.

“The Hoka brand was born with a purpose: to make running downhill easier and faster,” said Caroti, who also serves as interim president of Deckers’ performance lifestyle group (including Hoka). “That is really the fundamental reason for our success.” When it comes to specific product, Powers called out the Clifton, Bondi, Speedgoat and Mach as popular franchises, and noted that new performance products outside of the “typical run space” are winning over more consumers.

“The commitment to our performance foundation, while continuing to expand our share of closet through our hike, trail, lifestyle and apparel assortments is our winning recipe,” Powers said.

Crossover into lifestyle

Matt Powell, an advisor at Spurwink River and senior advisor at BCE Consulting, explained that while Hoka started out as a performance running brand, it eventually “tipped over into the lifestyle world, which is where the real sales volume is.”

In other words, Hoka’s commitment to performance and comfort has resonated with a broad base of consumers who might not necessarily be running a marathon, but want a comfy sneaker for work or travel.

To cater to this sector, Hoka has released some of its shoes in on-trend colors and materials, like suede. But even amid the fashion-forward updates, Caroti said Hoka’s roots in performance give the brand legitimacy in the lifestyle space.

“I firmly believe that if you’re not connected with something authentic and real, the lifestyle consumer will not take you seriously,” Caroti said. “The connection to performance is critical for us going forward in the lifestyle space.”

Keeping their attention

Hoka has generally managed to keep demand hot by avoiding flooding its products into the marketplace.

In a late October note to investors, Williams Trading analyst Sam Poser said that Hoka is playing the long game when it comes to growth and is not sacrificing brand sanctity for short-term gains.

“It will soon become clear that Hoka has the well-managed scarcity model, with innovative new product across categories, including road running, outdoor, trail running and recovery, which creates a strong brand that’s well positioned for longterm, profitable growth,” Poser wrote.

Omnichannel focus

In the first half of the year, Hoka’s direct to-consumer revenue increased 54 percent over the prior year, to represent 38 percent of total revenue. While the brand is mainly focused on growing its DTC channel, leaders also see wholesale as an important distribution channel.

“We want to lead with DTC,” Caroti said, “but this doesn’t mean DTC first at the expense of wholesale.”

As he explained, having a strong DTC arm allows Hoka to test and learn new concepts with its product and then bring those learnings to the wholesale channel.

When it comes to choosing wholesale partners, Powers said Hoka is “extremely discerning.”

“Hoka has continued to be one of the fastest-turning brands within the majority of its wholesale accounts, while staying aligned with Deckers’ aim to increase the proportion of direct-to-consumer business,” he said.

A strong team

Beyond product and distribution strategy, Powers said Hoka’s success is ultimately a testament to its stellar class of employees and leaders. As for its top leader, Hoka is still in the process of searching for its next brand president to take over from Caroti.

“We are proud to not only attract world class employees but to provide them a community they want to grow in,” Powers said. “None of our success today would be possible without our incredible team members — what you see today is a direct result of their ingenuity and passion, both for our consumers and for making the world a better place.”

For 37 years, the annual FN Achievement Awards — often called the “Shoe Oscars” — have celebrated the style stars, best brand stories, ardent philanthropists, emerging talents and industry veterans. The 2023 event is supported by sponsors Authentic Brands Group, Birdies, Caleres, Crocs, FDRA, Nordstrom, Saucony and Vibram.

Over its 50 years, Deckers has made it its mission to positively impact the world by uniting purposeful brands and diverse people who are driven to succeed and create change. Today, Deckers’ portfolio of like-minded brands includes UGG, HOKA, Teva, Sanuk, and Koolaburra with approximately 4,000 employees.

Although, today’s Deckers didn’t just happen, according to Deckers’ founder Doug Otto and the company’s long-tenured employees.

“It was the people that always made it work,” said Otto. “Karl Lopker and I were buddies in college at UCSB before we founded the company together. I was a surfer and wanted to pursue that at the time when Karl was making a leather flip-flop.”

The flip flop was a very durable sandal called the Latigo Thong which Otto took a sample of on a surfing trip to Hawaii in hopes of selling them.

“I drove up and down the coast with printouts of the ad,” said Otto. “I’d tack these up on all of the telephone poles near the surf breaks and people could pay for them by mail order.”

Influenced by the way people in Hawaii began calling the sandals “deckas,” which referenced the multiple decks of colors on the shoe’s platform, in early 1975, the company officially changed its name from Driftwood Dan to Deckers. “Then all the surf shops wanted to carry them,” said Otto, “and it took off from garage operation to getting a little industrial.”

“He actually just started the company with no idea that it could turn into what it has,” said Dave Powers, President and CEO of Deckers Brands, of Otto’s beginnings, “But he stuck with it every day, he was passionate about it, he put his heart and soul into it and he made the right decisions along the way.”

Growing down the coast from Santa Barbara

Deckers Brands first came to life in a tiny warehouse in Carpinteria, CA. At the time she started Leticia Baines, Purchasing Lead, remembers “it was so small [that when she started] there was a sewing department and assembly department. It was just like a family thing.”

“In 1993, when I went to my first all-hands meeting it was held in that little warehouse which was small, maybe 4,000 square feet at the most,” said Adam Druckman, Corporate Events Manager at Deckers, who has been with the company since 1993.

In 1996, Deckers Brands moved from that small warehouse to an office in Goleta, CA. It was a new era for the company. Shaina Groves, Director, Sales Operation and Strategy, FLG, remembers an ongoing revolution of the building, tearing down walls to put up new ones that would be painted in vibrant colors. “It was the best,” she said. “It felt fun
and creative. You could really feel the family vibe every time you walked through the door.”

Continuing to grow, Deckers Brands outgrew its office again in 2014. This time, the company built its own campus.

“Moving into our own campus was pretty wild,” said Powers. “I think that was the first time everyone felt like our offices were representing the true scale of the business. We started
looking like a more mature global company that was able to put amazing products in people’s hands all around the world.”

Growing together

It wasn’t until Teva was created in 1984 that Otto says the company truly began developing how to make Deckers a brand of longevity.

“I don’t think it was until we got to Teva that we really learned that,” said Otto. Teva’s founder was a Colorado river guide who put a back strap on a Deckers flip flop. “All the guides needed them because tennis shoes would get soggy or have pebbles in them but flip flops would fly off in the white water. He developed the first sports sandal.”

The innovation came along with the idea that a flip flop could be made to stay on with a strapping system, similar to a leash for a surfboard. Importantly, the innovation also began fueling the idea of taking niche products and making them into global brands.

Teva wasn’t the only brand to come onto the scene. In 1995, Deckers was introduced to a small brand named UGG.

Otto became fast friends with Brian Smith, Founder of UGG, often seeing each other in surfing shops. The two swapped stories and helped each other on the road, aware that their products held the key to two distinctive seasons. While Deckers thrived in the summer months, UGG reigned supreme in the winter.
It soon became an ongoing joke that one should buy the other out – although
what started out as a joke soon became reality when Otto ultimately decided to take the leap.

Admittingly, acquiring UGG was a big risk. “It would be a success if we could get it to $50 million and honestly we weren’t sure we could do that,” said Otto.

“Everyone thought it was just a fad that was going to happen but we weren’t going to make any money,” said Baines.

According to Powers, Otto, Thatcher and Smith are all problem solvers in their own way and that way of thinking has become an important detail of how Deckers Brands succeeds.

Gerard Marceda, Senior Director, Retail NA, who has been with Deckers Brands since 2006, said it has been amazing to watch the UGG brand evolve within Deckers “to the brand it is today and become a global powerhouse and an international iconic brand.”

That evolution was no small accomplishment for the team, said Powers. “They took a functional brand that was used by surfers and transformed it into a fashion leader, and nobody does that. I think that decision and how they’ve pivoted the brand was absolutely critical.”

“To acquire Teva and to acquire UGG, Otto set a foundation for how this company thinks, how it behaves and how it allows that entrepreneurial spirit that we still have after 50 years,” said Powers. “He planted the seeds for the kind of company that this has turned into.”

In 2011, lightning struck again when Deckers acquired Sanuk, followed quickly by the acquisition of HOKA in 2012. One of the original HOKA founders, Jean-Luc Diard, is still with Deckers today.

“You stick at it, you stay true to your convictions, you stay true to your beliefs and you just work at it and it’s amazing what can happen,” said Powers. “I care about our employees as I care about my family and I think that happens a lot in our company, we really care about each other. To me, that’s the enduring side of Deckers that is most special.”