Apparel / FashionUS
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JOURNEY · DETAIL
HOKA: From Trail Running Maximalist Shoes to Deckers' Growth Engine
Founded: Nicolas Mermoud, Jean-Luc Diard · HOKA (Under Deckers Brands)
JOURNEY
Key Fields
FIELD STAMPSIndustryApparel / Fashion
RegionMulti-region
ScaleGiant
ChannelOther
Origin
Founded in France in 2009 by former Salomon designers Nicolas Mermoud and Jean-Luc Diard. They observed that trail runners experienced massive impact on their calves and knees during descents, which traditional low-profile running shoes failed to buffer sufficiently. Consequently, they designed maximalist running shoes featuring an oversized midsole, low heel-to-toe drop, and a rocker geometry outsole, initially mocked as 'ugly shoes'. Acquired by Deckers Brands in 2013, leveraging the parent company's channels and capital to enter the global market.
Milestones
2009
Founded Turning Point
In 2009, Nicolas Mermoud and Jean-Luc Diard founded HOKA ONE ONE in France, with the brand name originating from the Maori language meaning 'to fly over the earth'. Having previously managed trail running shoe R&D at Salomon, the two decided to completely abandon traditional thin-sole designs and instead pursue the paradoxical unity of maximum cushioning and stability. Initial products were tested on a small scale within the trail running community and described by media as 'ugly shoes' due to their bulky appearance, but experienced word-of-mouth spread among veteran trail runners.
2013
Acquired Turning Point
In 2013, Deckers Brands acquired HOKA ONE ONE for approximately $1.1 million in cash, at a time when HOKA's annual revenue was only around $3 million. Deckers valued its thick-sole patents and loyal trail runner base, incorporating it alongside UGG and Teva. Following the acquisition, Deckers provided HOKA with supply chain and global distribution networks, though heavy marketing resources were not initially invested, allowing HOKA to rely primarily on organic growth within the trail running circle.
2018
Category Expansion Growth
In 2018, HOKA began expanding from trail running shoes into road running shoes, launching the Clifton and Bondi series targeting road runners. That same year, Deckers disclosed HOKA's revenue independently in its financial reports for the first time, at approximately $150 million. The brand rapidly expanded across specialty running store channels and was named one of the Best Running Shoe Brands of the year by Running Insight. The maximalist design penetrated from the trail circle into the mass road running market, completing the expansion of its core user base.
2020
Pandemic Boom PMF
During the pandemic, running became one of the few accessible outdoor activities, with HOKA's revenue soaring from about $350 million in fiscal 2020 to about $570 million in fiscal 2021. DTC channel growth exceeded 80%, with the official website and proprietary stores becoming the primary source of profit. The brand ignited social media on Instagram and TikTok through runner reviews and aggressive colorways, and the middle-class lifestyle label began to form, a phase that extended from 2020 to 2021.
2022
Growth Slowdown Failure
HOKA's revenue reached approximately $1.4 billion in fiscal 2023, but growth plunged from 58% the previous year to about 20%. Growth in core running shoe categories peaked, and over-reliance on wholesale channels led to uncontrolled discounting, with some distributors clearing inventory at low prices, hurting the brand's premium pricing. Meanwhile, On Running captured young runners' mindset with more stylish designs and higher social media buzz, squeezing HOKA's shelf space in North America—a phase extending from 2022 to 2023.
2024
DTC Reboot Turning Point
In its fourth-quarter fiscal 2024 earnings report, Deckers emphasized that HOKA's DTC growth had re-accelerated, with DTC revenue share rising from 20% to 26%. The brand began trimming wholesale channels, strengthening full-price sales strategies, and launching apparel categories to expand average order value. In fiscal 2024, HOKA's annual revenue surpassed $1.8 billion, but Deckers' stock price dropped significantly following the earnings report due to slowed growth expectations, as the market worried about a growth ceiling.
2025
China Bet Growth
In the Chinese market, HOKA became known as one of the 'New Three Treasures' of the middle class, alongside Arc'teryx and Lululemon. The brand opened flagship stores in core business districts of China's tier-one cities and reached younger consumers through platforms like Poizon (Dewu). According to Jiemian News reports, HOKA's pricing in China is about 30% higher than in the U.S., yet demand remains strong. In fiscal 2025, Deckers raised HOKA's global revenue target to over $2 billion, with the Chinese market serving as a key growth variable.
Turning Points
- Acquired by Deckers in 2013, gaining global channels and transitioning from a niche French brand to an American publicly traded subsidiary brand
- Expanded from trail to road running in 2018, with the Clifton and Bondi series opening up the mass runner market
- Shrunk wholesale channels and strengthened DTC in 2024 in an attempt to reverse out-of-control discounting and slowing growth
- The Chinese market became a new growth pole in 2025, with the 'New Three Treasures' middle-class label driving premium pricing
Failures & Pitfalls
- Early maximalist designs were mocked as 'ugly shoes', making it difficult to enter mainstream running shoe retail channels
- Over-reliance on wholesale led to uncontrolled discounting in fiscal 2023, damaging brand premium
- In the North American market, young runners' mindset was captured by On Running with more stylish designs
- Early apparel category expansion failed to replicate the success of running shoes, with slow growth in average order value
关键成功要素
- Maximalist patented technology formed a differentiated barrier, growing organically from the trail running circle
- Post-acquisition by Deckers provided supply chain and global distribution without interfering with product R&D
- An explosion of running demand during the pandemic coupled with social media runner reviews ignited growth
- Shrunk wholesale and strengthened DTC starting in 2024, attempting to repair brand premium and channel discipline
Lessons
- Word-of-mouth communication within niche professional circles builds brand trust better than mass advertising
- Maintaining product independence and founder culture after being acquired by a large corporation is key
- Over-reliance on wholesale channels leads to discount loss; scale and pricing discipline must be balanced
- When growth slows down, relying solely on new product categories is insufficient; channel control and user mindset maintenance are equally important
Core Data
- Annual revenue at acquisition in 2013：Approximately $3 million (publicly sourced, independent verification not performed)
- Fiscal 2023 revenue：Approximately $1.4 billion (publicly sourced, independent verification not performed)
- Fiscal 2024 revenue：Approximately $1.8 billion (publicly sourced, independent verification not performed)
- Fiscal 2024 direct-to-consumer revenue share：Approximately 26% (publicly sourced, independent verification not performed)
- Acquisition price 2013：Approximately $1.1 million (publicly sourced, independent verification not performed)
- China pricing premium：Approximately 30% higher than the U.S. (publicly sourced, independent verification not performed)
Competitors / Peers
On Running is HOKA's most direct competitor, also starting out with maximalist and cushioning technology, but On builds stronger brand freshness among younger consumers with more stylish design language and higher social media buzz. Brooks and Saucony maintain stable shares in North American running shoe channels, but lack HOKA's ability to break through into fashion. Nike and Adidas are reclaiming the high-end market in professional running shoes through carbon-plated racing shoes, while HOKA's deployment in racing scenarios remains relatively weak, relying primarily on cushioned and comfort-oriented running shoes to maintain its baseline.