By Anuja Bharat Mistry

(Reuters) – Deckers Outdoor shares rose about 11% on Friday after the shoemaker raised its annual sales forecast, anticipating strong demand for its shoes and boots during the critical holiday season.

Trendy and innovative brands such as Deckers' Hoka, New Balance, and Roger Federer-backed On are favored by consumers, impacting the market share of giants like Nike in the running category.

Barclays analyst Adrienne Yih noted that strong wholesale and store sales, along with early success in the back-to-school season, indicate a promising holiday season, despite potential short-term challenges from freight expenses.

Sales of Deckers' UGG boots increased by 13% in the second quarter, while Hoka sales surged 35%, driven by demand for its Clifton and Bondi shoes.

Hoka's products are gaining shelf space at retailers like Dick's Sporting Goods and Nordstrom as they restock popular consumer items.

Recent Hoka products such as Skyward X and Cielo X1 have penetrated the $200+ price point, improving margin forecasts, according to KeyBanc Capital Markets analyst Ashley Owens. Meanwhile, UGG continues to see consistent demand for its Tasman and Ultra Mini styles.

Deckers now expects annual sales to grow by 12% to $4.8 billion, up from a previous forecast of a 10% rise to $4.7 billion.

The company's forward price-to-earnings ratio for the next 12 months is 25.95, compared to Nike's 26.59 and On's 43.62.

"Deckers continues to deliver strong results in an uncertain macro operating environment, demonstrating its solid market position with a healthy brand portfolio that can sustain growth in the long term," stated Dana Telsey, analyst with Telsey Advisory Group.