Hoka’s Marathon Just Got Tougher

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Hello and Happy Sunday! As we kick off the week, here’s a fresh look at where markets, brands, and big bets are heading:

• Hoka’s Growth Stumbles: The once high-flying running brand has hit a slowdown, triggering a 22% stock drop for parent company Deckers.

• Monzo Grows Up (and Profits): The UK neobank posts its first annual profit and gears up for a £6B IPO, shedding its emoji-first image for a more grown-up pitch.

• The Cost of U.S. Debt Hits $882B: With interest payments outpacing defense and Medicare, Moody’s has stripped the U.S. of its final AAA credit rating.

• Klarna’s AI Cuts Costs — But Not Losses: AI is replacing staff and boosting efficiency, yet Klarna’s losses are still growing — and complaints are forcing a partial human return.

• Nike Still Rules U.S. Fashion: With 40% of Americans buying its gear, Nike leads the pack in brand power — beating Adidas, Levi’s, and even its own Jordan label.

Hoka Was Running Strong — Until It Hit a Wall

Hoka’s rapid rise may be hitting a wall. The running shoe brand, owned by Deckers, has seen sales growth slow sharply — from 58% to 23% over three years 🚨📉 — despite once racing to rival Ugg in revenue. Deckers declined to give guidance for the coming year, citing global trade uncertainty, triggering a steep 22% drop in its stock. Once seen as a strong challenger to Nike and Adidas, Hoka’s future growth path now looks far less certain, and Deckers shares are down over 50% this year.

Monzo Grows Up: From Emojis to IPO 🇬🇧🏦🤑

Monzo, the UK-based digital bank, has turned its first annual profit — £8.7 million in 2024 — and is now preparing for a potential £6 billion IPO, reportedly with help from Morgan Stanley. Once known for its flashy cards and emoji-laced budgeting tools aimed at millennials, Monzo is shifting its image as it courts older users and more traditional financial products like mortgages and pensions. With 1 in 5 British adults now using the app, Monzo seems ready to move from buzzy startup to serious player — though it may risk losing the cool factor that built its brand.

$882 Billion in Interest: The True Cost of U.S. Debt

The U.S. has officially lost its perfect credit rating across all major agencies for the first time since 1917, after Moody’s downgraded it from AAA to Aa1. ⬇️⬇️🥲 The agency cited soaring deficits and interest costs — which totaled $882 billion last year, more than the country spent on defense or Medicare. With national debt now at $36 trillion (98% of GDP) and rising fast, projections show it could hit 134% of GDP by 2035. The downgrade comes amid concerns over Trump’s new tax-and-spend bill, expected to add $4 trillion more to the deficit.

Klarna’s AI Bet: Fewer Humans, Higher Revenue — but Still in the Red

AI is reshaping Big Tech hiring — and Klarna is the clearest example. Since 2022, the Swedish fintech has slashed 40% of its workforce while boosting revenue per employee by 154%, 👨‍💻 💸 thanks largely to aggressive AI adoption. Its chatbot now does the work of 700 customer service agents, helping cut service costs by 40%. Despite that, Klarna’s Q1 net loss still doubled to $99M, and the company is walking back some automation after complaints.

Nike Tops U.S. Fashion Rankings, Beating Adidas and Levi’s

Nike remains the most popular apparel and footwear brand in the U.S., with 40% of Americans recently purchasing its products, according to Statista Consumer Insights 👟 👟 ✅. Despite its mainstream presence, Nike retains strong brand appeal across demographics, outperforming Adidas (35%) and other favorites like Calvin Klein, Levi’s, Ralph Lauren, Jordan, New Balance, and Under Armour. The data highlights the ongoing dominance of athleisure in American fashion — where a logo can turn a $10 shirt into a $120 statement.

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