Move over Nike — Jim Cramer says Deckers and 3 others companies are 'taking share'

Published Mon, Apr 1 20241:05 PM EDT

CNBC's Jim Cramer on Monday highlighted a group of shoe companies challenging Nike 's position in the market, following positive Wall Street research that pointed to multiple catalysts to propel the brands forward. Barclays on Monday initiated footwear coverage on Deckers Outdoor , On Holding , Crocs and Skechers USA all with a buy-equivalent rating. The firm's investment cases varied for each company, but a commonality between Deckers and On Holding was an opportunity to increase brand awareness. Analysts were positive on all four companies' inventory positions. "Nike has been a horrible performer, and a lot of people are thinking these companies are taking share, and I agree with that," Cramer said on "Squawk on the Street." Deckers, which owns the Hoka running brand, "has been an unbelievable performer," Cramer said Monday. In early February, the company reported record sales and earnings for its fiscal 2024 third quarter ended Dec. 31, driven in part by strength in Hoka. Shares of Deckers, which also owns Uggs, have roughly doubled over the past 12 months. Deckers also was added to the S & P 500 in late March. DECK 1Y mountain Deckers Outdoor share performance over the past 12 months. Meanwhile, shares of Switzerland-based On Holding are up about 12% over the past year. The footwear and athletic apparel maker, which counts tennis icon Roger Federer among its backers, went public in 2021. While Barclays said its survey data suggests Nike is still seen as a "cool" brand and is top of mind in sport, analysts still see "significant runway" for Deckers' Hoka and On, in particular. Nike's "lack of innovation and wholesale limitation" has helped give Hoka and On these growth opportunities, analysts wrote. Cramer discussed Hoka with Deckers then-CEO on "Mad Money" in 2014 , only a few years after Deckers acquired the brand . While it took several years for Hoka to break out, the brand eventually gained traction and has seen strong growth in recent years. Cramer has recently questioned Nike's standing, particularly after the company late last month offered guidance that spooked investors and sent shares tumbling nearly 7% in a single session. The company has grappled with fluctuating demand in the U.S. and a slowdown in growth in China. However, on its recent earnings call, management discussed its plan on revitalizing the brand, which included leaning more into third-party retailers like Foot Locker , a company in Jim Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club. Still, the day after Nike issued its guidance, Cramer suggested Nike was not a king "anymore." (Jim Cramer's Charitable Trust is long FL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Cramer’s Mad Dash: Deckers Outdoor

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