HOKA Down, ON Running Up

Lei Takanashi writing for Business of Fashion in another article behind a paywall:

• Hoka’s year-on-year sales growth slipped to 10 percent in its most recent quarter, representing a significant deceleration, while On reported strong growth of 43 percent.

This might be Hoka’s first slip. Will be fascinating to see if this is a one time miss or the beginning of a trent.

• The two brands have taken distinct approaches, with Hoka focussing on performance running while On has expanded into other categories, and now face different challenges in appealing to either lifestyle consumers or those seeking innovative footwear.

I just had a conversation with someone about this that Hoka as a brand started off selling shoes for “running around Mont Blanc” and only later expanded into the “shoes for nurses and Disneyland crowd”. On (to me) started as a lifestyle sneaker brand that only recently has shown serious ambitions to make shoes for athletes that have the ambition to win races. Is this the deciding factor for these business performance? I don’t think so, but this article confirmed my perception, so I thought it was worth pointing out.