Why Deckers Outdoor Deserves Your Attention More Than a Yeti Monster in 2026

The Yeti Holdings Challenge: When Growth Stalls

Yeti Holdings (NYSE: YETI) presents a cautionary tale for investors seeking reliable outdoor market exposure. While the company managed an 18% gain in 2025, barely keeping pace with the [S&P 500]( its underlying business fundamentals tell a different story. Sluggish revenue growth has weighed heavily on shareholder returns, evidenced by a punishing 35% decline over the past five years. This performance suggests that simply riding the outdoor recreation trend isn’t enough—operational momentum matters.

The challenge facing Yeti Holdings isn’t temporary market weakness but structural growth constraints. With thinner profit margins compared to peers and a smaller international revenue base, the company has limited levers to drive expansion. Even Yeti’s international markets, which grew at a respectable 14% year-over-year, represent a smaller portion of total business compared to competitors better positioned globally.

Deckers Outdoor: The Overlooked Valuation Play

Deckers Outdoor (NYSE: DECK), parent company of Hoka and Ugg, experienced a brutal 2025, losing nearly half its value. Yet this sharp selloff has created an opportunity worth examining. The stock now trades at a 15.4 price-to-earnings [(P/E) ratio]( —a meaningful discount compared to Yeti Holdings, despite posting superior growth metrics.

The valuation disconnect becomes even more apparent when benchmarked against Nike, which commands a 36 P/E ratio while delivering lower revenue and net income growth. Deckers Outdoor’s modest valuation doesn’t reflect its operational quality. In the second quarter of fiscal year 2026, both Hoka and Ugg achieved double-digit year-over-year growth rates, while net income surged 11% year-over-year. The company’s net profit margin nearly reached 20% in the period—a testament to operational efficiency that the market has undervalued.

The International Growth Engine: Where Real Momentum Resides

While Deckers Outdoor saw domestic net sales decline 1.7% year-over-year in Q2 FY26, this weakness was more than offset by extraordinary international performance. International net sales jumped 29.3% year-over-year, a substantial acceleration that signals the company’s brands have powerful global appeal.

This international strength matters significantly. As Deckers Outdoor’s global footprint expands, it creates a growth runway independent of U.S. market dynamics. Even amid tariff uncertainties, strong international demand provides a revenue cushion. Should domestic sales stabilize or reaccelerate—a realistic scenario if trade headwinds ease—the company could deliver exceptional overall growth rates.

By contrast, Yeti Holdings’ international business, while growing at 14% year-over-year, remains a smaller revenue contributor. The company lacks the same geographic diversification buffer that cushions Deckers Outdoor from regional market volatility.

Momentum Reset and Recovery Potential

Deckers Outdoor’s five-year track record demonstrates what’s possible when the company gains traction—shares have more than doubled over that period. The 2025 decline, while severe, may have been an overreaction. The company didn’t suddenly lose its competitive advantages; it faced temporary earnings pressure and market skepticism.

With Hoka and Ugg maintaining double-digit growth, expanding international presence, and attractive valuations relative to growth rates, the ingredients for a comeback in 2026 are present. Investors who bought after sharp selloffs in quality companies have historically been rewarded.

The Investment Case for 2026

Choosing between these two outdoor retailers isn’t complex: Deckers Outdoor offers the better combination of valuation, growth momentum, and geographic diversification. While Yeti Holdings may eventually stabilize, its structural growth challenges and premium valuation relative to fundamentals make it a less compelling opportunity.

For 2026, Deckers Outdoor appears positioned to deliver stronger returns than Yeti Holdings, assuming the company can stabilize domestic sales while maintaining international momentum. The risk-reward dynamic favors Deckers Outdoor’s recovery story over Yeti’s stagnant growth trajectory.