Deckers bet on HOKA's maximalist running shoe and rode it to record growth

Deckers was best known for UGG boots, a brand whose popularity moved in sharp waves. When UGG faded in the mid-2010s, the company needed something else to grow on, and it had a candidate: HOKA, a thick-cushioned running shoe with a loyal niche following.

Deckers chose to invest seriously in HOKA, building its own product line, its own brand voice, and its own direct-to-consumer channel rather than treating it as a side line. That let the running brand expand far beyond its original small audience.

The bet worked. HOKA's sales expanded by tens of percent per quarter — 52% to over 80% growth in several quarters — and it became a multibillion-dollar business that carried the company, with direct-to-consumer share rising sharply.

HOKA grew from a niche away-from-the-snow brand into a single-quarter $140M+ running brand, riding 52% to 83% quarterly growth.

UGG's swings made a second durable brand strategically necessary.

HOKA had unique product design (max cushioning) and a real fan base.

Dedicated DTC and marketing let it scale rather than stay niche.

Rapid compounding turned an experiment into the company's core value driver.

When your hero product fades, don't ration the next one; give a strong second brand its own capital, distribution, and story and it can become the future of the company.

HOKA continued on a steep growth path, becoming an industry reference in performance running clothing and footwear while UGG stabilized, so the two brands together made Deckers a stronger, less boom-and-bust footwear company.