Deckers(US:DECK) Bei Jing Shang Bao·2025-10-29 16:40Core Insights - HOKA, a key brand under Deckers Brands, is experiencing a slowdown in growth despite maintaining double-digit increases in sales and net profit, attributed to market saturation and increased competition [1][3][9] Financial Performance - For the second quarter of fiscal year 2026, Deckers Brands reported net sales of $1.431 billion, a year-over-year increase of 9.1%, and net profit of $268 million, up 10.74% [3] - HOKA's net sales reached $634 million, growing 11% year-over-year, while UGG's sales were $759 million, up 10.1% [3] - The overall sales forecast for Deckers Brands in fiscal year 2026 is approximately $5.35 billion, with HOKA's growth expected to be in the low double-digit range of 10%-15% [3] Brand Development - HOKA's sales growth has been impressive over the past few years, with a 23.6% increase in fiscal year 2025, reaching $2.233 billion, and a 27.9% increase in fiscal year 2024 [4] - HOKA currently contributes 45% to Deckers Brands' total sales, closely following UGG's 51% share [5] Market Trends - The running shoe market is becoming increasingly competitive, with brands like Nike, Adidas, and domestic brands such as Anta and Xtep entering the mid-to-high-end segment [10][12] - The demand for professional running shoes has surged due to the growth of mass participation events like marathons and trail running [9][11] Consumer Behavior - The rise of HOKA and similar brands in China is linked to consumer upgrades and the growing popularity of sports lifestyles, appealing to urban consumers who prioritize health and quality of life [8][9] - HOKA's marketing strategy focuses on product innovation and leveraging social media to build a high-end brand image [8] Competitive Landscape - The running shoe sector is described as a "red ocean," with numerous brands competing for market share, leading to increased pressure on HOKA and similar brands [10][12] - As HOKA's market presence grows, maintaining high growth rates becomes more challenging due to market saturation and heightened competition [12][13]