Glasses on the run Newsletter #19

Hi,

Starting right off with Hoka's latest blockbuster results. It delivered $352 million in revenues in the third quarter - a 91% year-on-year increase.

There is more at play here though. Last time I shared a couple of reports - the UQ Running Industry Association (RIA) 2022 datapoints as well as StockX's Current Culture Index 2023 and here is some further analysis and an interview, following the StockX report.

While Hoka being among the top 3 running brands in the RIA report is a testimony and achievement in its own right, the StockX report is really the one showing how the Hoka brand appeal is growing, expanding its market well beyond the core running market into the lifestyle category. That is confirmed by Deckers CEO Dave Powers, who's shared that Hoka is seeing significant growth in the 18-34 consumer demographic, particularly among women. He's quoted the Solimar, which is a multi-purpose shoe not necessarily targetted at runners, as particularly well performing among that demographic.

The strength of the Hoka brand combined with the strong direct-to-consumer channel that Deckers has been developing over the years are sure to guarantee Hoka's top performance in the coming months and years too. And, as seen by the StockX report, other brands like Salomon are joining in as well.  

What else was interesting in the business of running

Adidas CEO Bjørn Gulden is facing one of his main challenges in the new role, trying to figure out what to do with the inventory of shoes under the Yeezy brand. Adidas could potentially miss on up to $1.3 billion in revenues if it doesn't manage to sell the existing Yeezy stock. One of the options Adidas is reviewing is rebranding and selling the shoes.

Coros is launching a limited edition Apex 2 Pro Kilian Jornet. Kilian Jornet won the 2022 UTMB, completing the 171 km with a record time of 19:49:30. He was using a Coros Apex Pro during the run and the Coros team published a fascinating analysis of his record. So, the partnership is not surprising.

Brooks is expanding a partnership with Parkrun, the weekly running event. Brooks was already partnering with Parkrun in the UK and Ireland, and is now adding Germany, the Netherlands, and likely the US too.

And finally, Puma signed a long-term contract with the 100m Olympic Champion Marcell Jacobs.

Thank you for reading,

Momchil

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