UGGs Season is Here, but Hoka is the Brand to Watch (DECK)

The leaves are turning, the air is getting colder, and consumers are talking about fuzzy boots -- UGGs Season is upon us.

As a result, Purchase Intent and Total Mentions for UGGs' parent company, Deckers Corp. (DECK), are showing seasonal strength, trending +112% QoQ on a 30-day moving average.

Although the UGG brand accounts for ~42% of DECK’s total sales, it’s overrepresented in Mention volume due to the iconic nature of the shoes; Mention volume in 2020 was further inflated by the premium placed on “comfy” clothing during the lockdown.

UGGs may occupy a larger space in the consciousness of the American public, but the "Hoka" brand (HOKA ONE ONE) has become the key growth driver for Deckers.

Over the past 2 years, Hoka's underlying consumer Demand growth and Happiness have vastly outperformed UGG and other peers in the footwear space, a phenomenon which has become apparent from DECK's earnings reports. Last quarter, the Hoka officially passed UGG as Deckers’ top-earning brand, with revenues up +95% YoY.
DECK also opened its first dedicated Hoka stores last month.
We featured DECK in a bullish alert sent to members in February of 2021, citing strong underlying data across the entire brand portfolio and its proven track record of revenue growth.