Birkenstock rallied after its Q2 results were reported early Thursday. On stock gapped up Tuesday after the shoemaker cleared Q1 estimates and raised its revenue outlook. Shares of both companies have surged over the past month to recently retake key moving averages. Now the stocks are pushing toward buy points.
Meanwhile, IBD's Apparel-Shoes & related manufacturing group jumped 5.3% this week after the U.S. and China on Monday struck a new trade deal that slashed tariffs on Chinese-made goods to 30% from 145%. Footwear stocks broadly trended higher since early April, as President Donald Trump first paused some tariffs followed by expectations for further curbs. However, the group is still down 19.5% so far this year, MarketSurge charts show.
Birkenstock Reports
Birkenstock reported earnings of 63 cents per share on $642.5 million in revenue. FactSet expected a 39% increase in Q2 earnings to 61 cents per share on about 23% revenue growth to $640 million.
Business-to-business revenue increased 19%, slightly below the 22% growth expected by analysts. Direct-to-consumer revenue rose 19%, also missing views for 21% growth.
Birkenstock noted that unit sales grew by double digits while the average selling price of shoes was up in the midsingle digits. The company also invested 21 million euros during the quarter in an effort to expand production capacity.
The shoemaker now expects 2025 revenue to be at the high end of its previously announced forecast for 15% to 17% sales growth.
Birkenstock lifted its outlook for its adjusted EBITDA margin to range from 31.1% to 31.8%, compared to its previous guidance for 30.8% to 31.3%.
BIRK stock jumped almost 6% Thursday to close at 57.70. Shares are working up the right side of a cup base with a 62.66 buy point.
The stock rebounded above its 200-day moving average last Thursday.
BIRK stock is now up 1.8% in 2025.
On Holding Earnings
Switzerland-based On Holding reported earnings of 25 cents per share adjusted, down from 36 cents last year. Revenue increased to $861 million from $561 million last year.
FactSet expected earnings of 24 cents per share on $817 million in revenue.
Footwear sales jumped about 51% to $807 million, outpacing the $762 million expected by analysts.
Apparel revenue more than doubled to $45 million, also beating views for $38 million.
On in the release said that it continues to experience "strong demand across channels, regions and product categories." The company plans to build on its global brand momentum via its product pipeline for the rest of the year.
On lifted its full-year net sales outlook to 28% growth to 2.86 billion Swiss francs ($3.4 billion) based on brand strength and order book visibility for the rest of 2025. On during its Q4 results expected 27% sales growth for the year.
However, the tariffs and trade shifts have cause higher levels of planning uncertainty.
On Holding now expects its gross profit margin to range from 60% to 60.5% vs. its Q4 outlook for 60.5%.
The shoemaker also lowered its adjusted EBITDA margin forecast to range from 16.5% to 17.5% for the year. On previously expected a range of 17% to 17.5%.
The guidance also includes the additional U.S. tariffs placed during the current 90-day pause on country-specific reciprocal tariffs.
On Holding Stock Working On A Base
On Holding stock rallied 11.8% Tuesday to gap up in a cup base and push further above its 200-day line. ONON jumped another 4.6% Thursday following a slight gain Wednesday.
Shares have rallied about 74% from their April 4 low and are working up the right side of a cup base with a 64.05 buy point.
Now, On stock is up about 10% on the year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
