4 Things to Watch With DECK Stock in 2026

Core Viewpoint - Deckers Outdoor has faced significant challenges in 2025, resulting in a 53% decline in stock value year-to-date, raising questions about its ability to recover in 2026 [2][4]. Group 1: Macroeconomic Environment - The primary challenge for Deckers in 2025 has been weakening consumer spending in the U.S., impacting not only Deckers but also other consumer discretionary companies like Lululemon and Nike [5]. - Revenue growth slowed to 9% year-over-year in the fiscal second quarter, with domestic sales increasing only 1.7%, while international sales grew by 29.3%, now accounting for over 40% of total revenue [6]. Group 2: Performance in New Markets - Growth in international markets, particularly in China and the EMEA region, is crucial for Deckers' long-term growth strategy, with the company opening its first store in Germany [9]. - Hoka has shown strong performance in major European markets, gaining market share and experiencing growth in the direct-to-consumer channel [10]. Group 3: Margin Strength - Deckers has historically maintained high gross margins, which improved from 55.9% to 56.2% despite disappointing second-quarter results, indicating effective management of product pricing [11]. Group 4: Valuation - Following a decline of over 50% in 2025, Deckers' stock trades at a price-to-earnings ratio of 14, suggesting that significant weakness is already reflected in the stock price [13]. - If the valuation decreases further, it may present a buying opportunity for long-term investors, assuming the company can stabilize its business [14].