Will Deckers Outdoor (DECK) be Able to Reaccelerate Growth?

Greenlight Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Greenlight Capital’s investment strategy focuses on constructing a bottom-up portfolio comprising undervalued long positions and overvalued short positions, while also including a macro book to hedge risks and capture insights. The Partnership returned 9.0% (net) in 2025 compared to 17.9% for the S&P 500 index. In contrast, it returned 8.5% in Q4, compared to 2.7% for the index. The Partnership has returned $6.1 billion, net of fees and expenses, to its investors since its inception in May 1996.  For more information on the Partnership’s top picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Greenlight Capital highlighted Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories company operating Hoka and UGG brands. The one-month return of Deckers Outdoor Corporation (NYSE:DECK) was -5.85%, and its shares lost 56.25% of their value over the last 52 weeks. On January 28, 2026, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $97.62 per share, with a market capitalization of $14.481 billion.

Greenlight Capital stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its fourth quarter 2025 investor letter:

"Deckers Outdoor Corporation (NYSE:DECK) designs, markets and distributes footwear and apparel, including the Hoka (running shoes) and UGG (casual luxury cold-weather shoes) brands. DECK stock declined after it posted disappointing results early in 2025, which were impacted by tariff uncertainty, a warehouse transition in Europe, and warm weather during the early part of the UGG selling season. As Hoka expands internationally, we expect growth to re-accelerate and believe the company will use its strong balance sheet, including net cash equal to roughly 9% of its market capitalization, to increase the pace of stock repurchases. We acquired our shares at an average price of $85.49. DECK ended the quarter at $103.67."

Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 62 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the third quarter, up from 59 in the previous quarter. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Deckers Outdoor Corporation (NYSE:DECK) and shared the list of stocks Jim Cramer commented on. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.