Even though the brand is not discounting, Hoka is finally feeling pressure from the promotional activity hitting the athletic shoe market.
According to Stefano Caroti, president and chief executive officer of Hoka parent Deckers Brands, promotional activity increased throughout the second quarter, particularly in athletic footwear. This weighed on the company’s U.S. e-commerce performance as it worked to maintain its full-price selling strategy, the CEO noted.
“We also observed two shifts in consumer behavior,” Caroti told analysts on the company’s second quarter 2027 earnings call on Thursday. “Consumers increasingly seeking discounts, concentrating traffic around promotional events, and consumers becoming more purposeful in their spending and prioritizing products with immediate relevance and utility.”
Across the business, Hoka’s core franchises performed well, led by Bondi, Caroti noted on the call. The introduction of Clifton Pro, a well-received extension of the Clifton franchise, also contributed to that success.
However, feedback from consumers and wholesale partners indicated that some other franchise updates in calendar year 2026 “did not resonate as well,” the CEO explained.
Asked further by an analyst on Thursday’s call about which styles didn’t meet expectations, Caroti noted that sales for the Transport, Kawana and Solimar styles “didn’t go as planned” in the quarter. Instead, Hoka found success with the Speedgoat 7, Arahi 9 and Stinson 8 models, which are “doing very well across the marketplace,” he said.
“This feedback highlights where we have an opportunity to improve for future seasons, starting with spring 2027,” Caroti added. “I am very encouraged by what Robin [Green, president of Hoka] and team have crafted and created for spring/summer 2027 and fall 2027.”
The company is also looking at diversifying its price points in the future to ensure it can keep to its full-price strategy commitment. The CEO said on the call that it will be expanding Hoka’s price architecture in both directions, up and down, “broadening access while elevating the pinnacle of the brand.”
In the first half of calendar ’27, Caroti noted that Hoka will introduce two “powerful expressions” of this pricing strategy. Its new Fly Pace sneaker will launch in January at $115 and will “welcome a new consumer” into Hoka. Meanwhilte, the Bondi Ultra X will launch in June at $325, and will deliver the brand’s “softest, most cushioned ride for consumers seeking the very best.”
This comes after the Goleta, Calif.-based company reported that net sales in the second quarter of fiscal 2027 increased 3.5 percent to $1.48 billion compared to $1.43 billion in the same year-ago period. Net income for the three months ended Sept. 30 rose 16.8 percent to $313.1 million, or $2.31 a diluted share, from $268.2 million, or $1.82 a diluted share, the prior year.
For Hoka, the brand reported net sales in the second quarter of $677.2 million, a 6.8 percent increase compared to $634.1 million a year.
Looking ahead, the company lowered yearly sales outlook following its most recent performance. Deckers now expects net sales for the full fiscal 2027 year between $5.70 billion and $5.73 billion. This is down from its previous yearly guidance, which called for net sales between $5.86 billion to $5.91 billion for fiscal 2027.
“The near-term challenges do not change my belief in our brands and their potential for growth,” Caroti added on Thursday’s call. “As you know, growth is never a straight line. And in this environment, we don’t want to trade brand equity for short-term revenue. We need to manage the next couple of quarters with discipline. At the same time, we need to keep investing in the opportunities that will drive long-term growth.”