Deckers Outdoor shares continue to grow as demand for Hoka shoes continues to grow

((Automatic translation by Reuters, see disclaimer https://bit.ly/rtrsauto))

Actions by Deckers Outdoor

DECK.N

jumped about 15% in premarket trading on Friday, after the shoemaker raised its annual sales forecast and exceeded expectations for the second quarter, thanks to resilient demand.

Trendy and innovative brands such as Hoka, UGG, New Balance and On

FIRST.N

endorsed by Roger Federer, are popular with consumers, especially in the running shoe sector, and have taken market share from giants such as Nike

ON

.

Deckers reported a nearly 35% jump in Hoka sales in the second quarter, while the ugg brand grew 13%.

“DECK continues to deliver strong results in an uncertain macroeconomic environment, demonstrating its strong market position with a healthy portfolio of brands that can continue to drive long-term growth ,” said analyst Dana Telsey at the Telsey Consulting Group.

Hoka got shelf space at Dick’s Sporting Goods

DKS.N

and Nordstrom

JWN.N

as retailers restock their inventory with consumer favorite products.

“The company is doing well in driving brand awareness and increasing overall awareness. We view increased marketing investment as an important strategic decision that should continue to support to business income growth,” said Joseph Civello, an analyst at Truist Securities.

Deckers expects its annual sales to rise 12% to $4.8 billion, compared to a previous 10% increase to $4.7 billion.

Its quarterly net income of $1.31 billion beat expectations of $1.20 billion, and adjusted earnings came in at $1.59 per share, compared to estimates of $1.23 dollars.

Deckers’ price-to-earnings ratio for the next 12 months, a common measure of stock valuation, was 25.95, compared to 26.59 for Nike and 43.62 for On.