Here’s What Weighed on Deckers Outdoor Corporation’s (DECK) Shares

Diamond Hill Capital, an investment management company, released its “Long-Short Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The market was mixed in the first quarter of 2025, due to the uncertainty caused by the new administration’s avalanche of activity. However, the portfolio outperformed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index) in the quarter. In Q1, both long and short books generated relative tailwinds, with the short book underperforming the index, while the long book was positive, despite the index being negative. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2025.

In its first-quarter 2025 investor letter, Diamond Hill Long-Short Strategy highlighted stocks such as Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories company for everyday casual lifestyle and high-performance activities. The one-month return of Deckers Outdoor Corporation (NYSE:DECK) was -7.82%, and its shares lost 38.21% of their value over the last 52 weeks. On June 23, 2025, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $100.44 per share, with a market capitalization of $15.009 billion.

Diamond Hill Long-Short Strategy stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q1 2025 investor letter:

“Also among our top individual Q1 contributors were our short positions in GameStop and Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor designs, markets and distributes casual and high performance footwear, apparel and accessories. As competition is increasing via promotions in the running footwear space, investors are seemingly weighing whether revenue growth could begin decelerating consistently — which has weighed on shares.”

Why Deckers Outdoor Corporation (DECK) Crashed On Friday

A customer browsing a retail store, finding the perfect footwear for their casual outfits.

Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the first quarter, which was 66 in the previous quarter. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Deckers Outdoor Corporation (NYSE:DECK) and shared Artisan Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of 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.

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