Decker Brands: The Rising Star in the Shoe Market Outshines Nike

The past few years have been anything but easy for Nike. The world-renowned sportswear manufacturer has been struggling with stagnant sales since 2022, and in the last twelve months alone, sales have declined by 3 percent. The consumption slump is particularly evident in China, but in other markets, new competitors like Lululemon also pose a real threat. Another, less prominent but successful rival is Decker Brands. The company, whose shares were recently split, has practically usurped Nike in the footwear market. The brand Hoka, in particular, contributes to growth, recently generating a 29 percent increase in sales compared to the previous year. In contrast, Nike recorded a sales decline of 10 percent in the last quarter. The success of Decker Brands is mainly attributed to the strategic acquisitions of brands such as Ugg, Teva, and Hoka. Since its acquisition in 1995, Ugg has established itself as a solid player and recently reported a 14 percent increase in sales. This demonstrates that Decker Brands is not a flash in the pan but continuously develops and strengthens brands. Even though the stock has experienced a tremendous development over the past ten years, the current forward P/E ratio of 30.4 is relatively high compared to the S&P 500. Despite its success story, investors should exercise caution at this price.