Hoka running shoes have been right on Ugg’s heels, but growth is slowing and the future looks uncertain

You may have noticed that almost everyone you know is into running now. People pad along sidewalks like never before, share Strava highlights to their stories like nobody’s business, and even use running to find love.

Naturally, that vibe shift has played into the hands (or feet) of one of America’s biggest footwear companies.

Positive splits

Ugg, the brand best known for its sheepskin, fleece-lined boots, has long occupied the top shelf in the Deckers shoe closet, posting almost $20 billion in revenues over the last 10 years. However, ultra-cushioned running sneaker brand Hoka has sprinted in recent years to almost catch up with Ugg’s bumper sales figures, pulling in $2.23 billion for Deckers Outdoor in the last fiscal year.

Recently, though, the lightning pace Hoka had set is slowing, with annual sales growth dropping from 58% to 28% to 23% in the last three fiscal years. And looking ahead, the trajectory of Deckers’ all-important ascendent brand is uncertain, with the company declining to provide any financial guidance for the coming year in its results, blaming “macroeconomic uncertainty related to evolving global trade policies.” Traders have been dumping the stock in response, which dropped as much as 22% in early trading on Friday.

Alongside Swiss giant On, buzz has built around Hoka in the running community for years now, with mainstream publications now putting out pieces every few months about how the two have come to challenge established names like Nike and Adidas.

Still, with shares down more than 50% so far this year, investors have lost faith in the journey recently.