On stock gapped up Tuesday after the shoemaker cleared Q1 estimates and raised its revenue outlook. Birkenstock reports its results on Thursday. Shares of both companies have surged over the past month to recently retake key moving averages ahead of earnings.
Meanwhile, IBD's Apparel-Shoes & related manufacturing group jumped 5.8% Monday as the U.S. and China 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.
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
On Holding stock rallied 11.8% Tuesday to gap up in a cup base. ONON stock advanced 3.8% on Monday to rebound above its 200-day moving average.
Shares have rallied about 85% 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 almost 5% on the year.
Birkenstock
FactSet expects Birkenstock to report a 39% increase in Q2 earnings to 61 cents per share on about 23% revenue growth to $640 million.
Analysts predict business-to-business sales will rise 22% to $480 million. Direct to consumer sales are seen climbing 21% to $155 million.
BIRK stock rebounded above its 200-day moving average last Thursday. Shares are working up the right side of a cup base with a 62.66 buy point.
Birkenstock rose 1.3% Monday, but closed well off highs. Shares climbed 1.5% Tuesday.
BIRK stock is down 4.6% in 2025.
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