Running Shoe Market Faces Tighter Competition
Runners may see more promotions as the premium footwear industry deals with cooling demand and rising inventory.
Updated on Oct. 23, 2026 in Running
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As of October 23, 2026, analysts at Jefferies issued a growth warning for On Holding, highlighting a shifting premium footwear landscape. The market shift coincides with recent performance data from competitor Deckers Outdoor Corp, which reports slowing growth for its HOKA brand.
Why it matters
The premium running market is currently facing weakened consumer demand and increased promotional activity. As companies like Nike strengthen their market position, brands that have historically relied on specific digital traffic strategies may face new financial pressures.
Deckers Outdoor Corp reported 7% revenue growth for HOKA in Q2 2026, driven by a 9% rise in wholesale and 4% in direct-to-consumer sales. Analysts note that On Holding currently relies on paid search for 53.8% of its US website traffic, though the long-term sustainability of this model is under investigation.
The players
On Holding
A Switzerland-based athletic footwear company known for its premium running shoes.
Deckers Outdoor Corp
The parent company of HOKA that develops performance running footwear and apparel.
Nike
A global athletic footwear and apparel leader currently regaining position in the running market.
The details
On Holding has maintained its gross margins by focusing on full-price selling, a strategy that is increasingly challenged by rising inventory levels across the industry. The brand currently relies heavily on paid search to drive U.S. website traffic, creating potential vulnerability in a tougher growth environment. Meanwhile, competitors like Nike are simultaneously improving their footing in the performance running footwear market.
Timeline
HOKA revenue grew 7% during Q2 2026.
On Holding faces a potential shift in its growth environment by 2027.
Health Landscape
The athletic footwear market is moving away from a period of high-growth exuberance toward increased promotional competition. This pivot marks a departure from previous years where premium brands maintained high margins regardless of broader retail shifts.
Readers looking to purchase performance footwear may notice more frequent promotional pricing as brands respond to changing retail demand. If you are choosing running shoes, focus on fit and injury prevention rather than brand market share when evaluating your next pair.
The takeaway
The running footwear market is entering a more competitive phase characterized by higher inventory and increased discounting. When selecting new gear, prioritize biomechanical support and personal comfort over brand-name market trends.
Further reading
For more on the current state of athletic gear, visit Running.
Source note: This article includes information reported by Proactiveinvestors NA.
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