Is Deckers Outdoor Corporation (DECK) The Best RV and Camping Stock To Buy Now?

Deckers Outdoor Corporation (DECK) has been making waves in the retail-apparel sector, with its popular brands UGG and HOKA driving impressive earnings and stock growth. As the RV and camping market continues to boom, investors are wondering if DECK is the best stock to buy now. Let's dive into the financials, strategic initiatives, and market trends to find out.

**Financial Performance and Valuation**
DECK has demonstrated remarkable earnings growth, with a 39% increase in diluted EPS and a 20% increase in revenue in the second fiscal quarter of 2025. The company's DTC net sales surged by 19.9%, with DTC comparable net sales up by 17.0%. International net sales also soared by 33.0%, highlighting DECK's global appeal.
In terms of valuation, DECK boasts an attractive P/E ratio of 31.08 and a forward P/E of 27.61, indicating a relatively undervalued position compared to its historical averages and industry peers. Despite the recent 15.5% stock price increase, DECK remains below its 52-week high, presenting an opportunity for investors seeking a strong, yet undervalued, player in the retail-apparel sector.

**Strategic Initiatives and Brand Momentum**
DECK's strategic focus on brands like UGG and HOKA, coupled with its consumer-first mindset, brand-led philosophy, and innovation-forward products, has positioned the company well for continued growth and success. The success of these brands has driven revenue and earnings, attracting fresh capital and outpacing the industry's modest 1% gain.
UGG's revenue increased by 20% in the past quarter, driven by its popular sheepskin boots, while HOKA's revenue surged by 30%, thanks to its innovative footwear for ultra-runners and athletes. The company's direct-to-consumer (DTC) sales have also grown by 17% year-over-year, indicating a shift in consumer behavior towards online shopping.
**Market Trends and Growth Potential**
The RV and camping market is experiencing significant growth, driven by key trends such as increased consumer interest in outdoor activities, a shift towards experiential travel, and the rising popularity of van life. DECK's brand portfolio, particularly UGG and HOKA, resonates with these trends, making it an attractive investment opportunity in the sector.
The company's strong brand momentum, strategic expansions, and impressive earnings make it a compelling choice for investors seeking exposure to the RV and camping market. With a forward P/E ratio of 27.61 and a 10.5% yield, DECK appears to be a bargain with strong fundamentals and growth potential.

In conclusion, Deckers Outdoor Corporation (DECK) is well-positioned to capitalize on the growing RV and camping market, driven by key trends and strong brand momentum. With impressive earnings growth, an attractive valuation, and a solid balance sheet, DECK is an appealing investment opportunity for those looking to gain exposure to the retail-apparel sector. As the company continues to execute its long-term strategy and drive brand success, investors can expect a promising outlook for DECK stock.