Sales of Ugg-owner Deckers (DECK) got a major boost from its increasingly popular French cushioned running shoe brand called Hoka.
Analysts have now upgraded their rating for Deckers from neutral to positive and also raised its price target for the stock from $161 to $169. Shares of Deckers have overall rose more than 4% to around $144 per share, with the stock generally rallying about 45% during the course of past year.
The shoe line is gaining fast popularity among youngsters who now prefer to wear running shoes not just to the gym but all-day. Further, its partnerships with upcoming retailers like Engineered Garments and Outdoor Voices have also added visibility of the product to millennials.
Recently rapper Kanye West was spotted wearing a Hoka boot and the image raked up online sales to another level. Analysts say that the photo sent off a ‘Hoka effect’.
Analysts now expect that Hoka brand will cross $300 million in sales by 2021 and $500 million by 2025. Over the last three years, revenue has increased by almost 40% ,and the owners are confirmed that the future looks good for them.