Love it or hate it, the cold weather is on its way. However, thinking like an investor, there’s an opportunity to invest in several companies whose revenues and earnings heat up when consumers get cold.
Retail stocks have been out of favor as even higher-income consumers look to make their dollars stretch further. However, data from the National Retail Federation (NRF) projects retail sales in November and December will be 3.7% to 4.2% higher than in 2024 and are expected to surpass $1 trillion.
Digging deeper into the survey, respondents plan to spend an average of $890 on gifts and other seasonal items. That spending won’t show up in this current earnings season. Still, expectations for higher spending are why now is the time for investors to look at the retailers and brands whose fortunes are tied to winter weather and seasonal expenditures.
Deckers Outdoor: A Standout Performer Riding Strong Momentum
Deckers Outdoor Corp. (NYSE: DECK) is the parent company of iconic footwear brands UGG and HOKA. DECK stock is down 58.5% in 2025 and has failed to gain momentum despite posting a solid earnings report in late October.
The primary issue is tariffs. Deckers expects “significant tariff headwinds” of around $150 million in its 2026 fiscal year. The company also said it expects its tariff burden to be material into its 2027 fiscal year.
The company is also staring at concerns that its core consumer may be tapped out. Over the last three quarters, revenue and earnings have increased on a year-over-year basis. But the DECK stock performance suggests investors wonder how long the pull-forward effect from tariffs can last.
They may want to consider the analysts' forecasts, which give DECK stock a consensus price target of $118.11. That’s a 40% gain from its price as of Nov. 13 and is being driven higher as analysts raise their price targets. At 14x forward earnings and with earnings growth of over 12% expected in the next 12 months, the stock also appears undervalued compared to itself and the sector.
Canada Goose: A Luxury Play Banking on the High-End Consumer
Canada Goose Holdings Inc. (NASDAQ: GOOS) is the opposite of Deckers in terms of stock price performance. GOOS stock is up over 32% in 2025 and has recovered from a brief post-earnings sell-off.
The company missed on the top and bottom lines. The latter was due to elevated sales and marketing expenses, store labor, and product costs. But it’s the topline number that is causing more concern. Analysts believe Canada Goose is struggling with weak demand at a time when it’s attempting to introduce innovations.
There are also concerns that Canada Goose may be taken private. Both of those stories will unfold over the next several quarters. For now, it’s worth considering that analysts are forecasting over 19% earnings growth in the next 12 months. That aligns nicely with the company’s forward P/E ratio of around 17x.
Columbia Sportswear: A Mainstream Staple
Columbia Sportswear Co. (NASDAQ: COLM) is another stock that’s seen better days. COLM stock is down 35% in 2025 and has been hit by several analyst downgrades since it reported earnings in late October.
Columbia is another company facing tariff pressure. The company expects an impact of between $35 million and $40 million in its current fiscal year. Management advised analysts that price increases are on the way, but it expects short-term margin pressure.
Still, COLM stock has a consensus price target of $60.54, representing a 10% increase from its current price. Columbia also offers something many other brands in this category don’t, a dividend that yields about 2.2% and has a safe payout ratio around 36%.
VF Corp: A Contrarian Play With High-Profile Brands
VF Corp. (NYSE: VFC) is the parent company of The North Face and Timberland brands. The story for VFC stock in 2025 is similar to that of Deckers and Columbia. VFC beat on its top and bottom lines, but the stock is still down over 25% for the year.
However, the stock has been climbing since the release of the earnings report. That’s despite the overhang of tariffs, a familiar theme among these retailers. Some of the interest may stem from the company’s plan to sell off its Dickies brand for approximately $600 million. The company states that it will utilize some of those proceeds to reduce its debt.
VFC stock is trading just 6% below its consensus price target of around $16. However, the company is trading at around 21x forward earnings, and analysts are forecasting earnings growth of over 48% in the next 12 months. That's a discrepancy that may pique the interest of contrarian investors.