Investment Rating - The investment rating for the textile, apparel, and luxury goods industry is "Positive" and maintained [9] Core Insights - The report summarizes the Q3 2025 financial performance of overseas sports brands, highlighting sales performance, profitability, and inventory status, indicating a gradual improvement in overall performance [2][4] - Revenue performance among major footwear and apparel companies shows divergence, with some brands experiencing strong growth while others face challenges [5][6] - The outlook for the industry suggests a gradual recovery in demand and inventory replenishment, particularly for brands like Adidas and On, while Nike continues to face headwinds [8][36] Revenue Performance - Revenue growth varied significantly among companies in Q3 2025, with Adidas (+12%), On (+35%), and Amer Sports (+30%) showing strong growth, while Nike and VF both reported a decline of -1% [5][19] - The overall revenue performance in Q3 2025 improved compared to Q2, despite some brands continuing to face pressure [5][6] Guidance - The visibility for the full year has improved, with brands like UA restoring full-year guidance, indicating a positive trend despite expected performance divergence [6][26] - Strong growth trends are expected to continue for On and Amer Sports, while Nike and VF are projected to see declines but with signs of improvement [6][31] Inventory - The industry is entering a phase of inventory replenishment, with moderate recovery in demand observed in the U.S. and Europe, although challenges remain in certain markets [7][36] - U.S. apparel inventory levels are in a destocking phase, with wholesale inventory ratios declining since 2023, while retail inventory levels have stabilized [7][36] Future Outlook - The industry is expected to gradually transition into a replenishment phase, with demand showing signs of recovery, particularly in the U.S. apparel sector [8][36] - Brands like Adidas are actively seeking to replenish inventory for growth, while Nike continues to destock amid ongoing challenges [8][36]

Key Takeaways ONON's DTC net sales jumped 27.6%, outpacing wholesale and shifting its sales mix toward direct channels.The DTC share rose to 39.6% of total sales, while wholesale's share dropped 80 basis points year over year.ONON's premium retail and e-commerce strategy aims to deepen customer loyalty and elevate brand positioning.On Holding AG (ONON) aims to shift its business model toward higher-margin channels. The third-quarter 2025 results highlight an aggressive push to shift its sales mix toward the ...

Core Viewpoint - The article emphasizes the importance of portfolio diversification and highlights five growth stocks that present significant short-term and long-term investment opportunities beyond artificial intelligence stocks [2]. Group 1: MercadoLibre - MercadoLibre operates an online marketplace across 18 Latin American countries, benefiting from the region's growing e-commerce adoption [3]. - The company reported a 49% year-over-year revenue increase (currency neutral) in Q3 2025, with gross merchandise volume (GMV) rising by 35% [4]. - MercadoLibre is expanding its fintech services, gaining new users rapidly and increasing its credit portfolio, indicating strong growth potential [4][5]. Group 2: Dutch Bros - Dutch Bros operates over 1,000 stores in the U.S. and plans to expand significantly, aiming for 7,000 stores in the future [9]. - The company achieved a 25% year-over-year sales increase in Q3 2025, with comparable sales up by 5.7% and earnings per share rising from $0.11 to $0.14 [9]. - Dutch Bros focuses on speed and friendly service, with a business model primarily consisting of drive-thru locations and mobile ordering [8]. Group 3: On Holding - On has established a premium athletic wear brand, particularly known for its Cloudtec footwear, and is experiencing robust growth despite a challenging market [12][13]. - The company reported a 35% year-over-year revenue increase (currency neutral) in Q3 2025, with a gross margin of 60.6% and a 290% increase in net income [13]. - On is expanding its brand presence through both direct-to-consumer and wholesale channels, indicating potential for significant investor gains [13]. Group 4: Nu Holdings - Nu is a digital bank based in Brazil, serving over 60% of the adult population and expanding into new regions like Mexico and Colombia [14][15]. - The company reported a 39% year-over-year increase in revenue and net income in Q3 2025, with average revenue per active user rising from $11 to $12 [15]. - Nu is pursuing long-term expansion plans, including applying for a bank charter in the U.S., which presents substantial growth opportunities [15]. Group 5: Amazon - Amazon is the largest e-commerce company in the U.S., with a significant market share of around 40%, and is continuously launching new services [17]. - The company’s Amazon Web Services (AWS) is the largest cloud computing provider globally, playing a crucial role in its growth, particularly in AI [18]. - Management sees explosive growth opportunities in AI, indicating that Amazon could be a major long-term winner in this space [18].

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable, particularly for On Holding (ONON) [1][5]. Group 1: Analyst Recommendations - On Holding has an average brokerage recommendation (ABR) of 1.48, indicating a consensus between Strong Buy and Buy, based on 24 brokerage firms [2]. - Out of the 24 recommendations, 17 are Strong Buy and 3 are Buy, which account for 70.8% and 12.5% of all recommendations respectively [2]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often fail to guide investors effectively [5][11]. Group 2: Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][11]. - The ABR is calculated solely from brokerage recommendations, which may not reflect the actual potential for price appreciation [10][11]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to the ABR [8][12]. Group 3: Zacks Rank vs. ABR - The Zacks Rank is a quantitative model that utilizes earnings estimate revisions and is displayed in whole numbers, contrasting with the decimal-based ABR [9][10]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, while the ABR may not be current [13]. - On Holding has achieved a Zacks Rank 1 (Strong Buy) due to a 90.4% increase in the Zacks Consensus Estimate for the current year, indicating strong analyst optimism [14][15].

Core Insights - The holiday sales season for 2025-26 in the U.S. has begun, with Thanksgiving and Black Friday being critical days for consumer spending, which is a key indicator of economic conditions and consumer behavior [2][3] Company Summaries Crocs Inc. (CROX) - Crocs has a Zacks Rank of 1 and has seen significant growth in brand awareness through collaborations and product innovations, appealing to a broad demographic [8] - The company is refreshing its product lines and has upcoming launches that are generating consumer interest, with an expected revenue growth rate of 0.4% and earnings growth rate of 3.9% for the next year [11] - The short-term average price target for Crocs represents an increase of 11.2% from its last closing price of $83.07 [11] On Holding AG (ONON) - On Holding also holds a Zacks Rank of 1, providing innovative footwear and sports apparel, with an expected revenue growth rate of 21.2% and earnings growth rate of 79.8% for the next year [12][13] - The short-term average price target for On Holding indicates a potential increase of 45.3% from its last closing price of $41.78 [13] Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and has outperformed the industry, driven by its strategic "Next Great Chapter: Accelerate Plan" focusing on brand elevation and operational agility [14][16] - The company is investing in digital transformation, enhancing consumer engagement, with an expected revenue growth rate of 9.5% and earnings growth rate of 25% for the current year [17] - The short-term average price target for Ralph Lauren suggests a 3.3% increase from its last closing price of $364.50 [17] Kontoor Brands Inc. (KTB) - Kontoor Brands, with a Zacks Rank of 2, is a lifestyle apparel company with an expected revenue growth rate of 11.3% and earnings growth rate of 5.3% for the next year [18][19] - The short-term average price target for Kontoor Brands indicates a potential increase of 31% from its last closing price of $73.69 [19] Boot Barn Holdings Inc. (BOOT) - Boot Barn Holdings has a Zacks Rank of 2 and operates in the lifestyle retail sector, with an expected revenue growth rate of 16.2% and earnings growth rate of 20.5% for the current year [20][22] - The short-term average price target for Boot Barn suggests a 15% increase from its last closing price of $195.76 [22] Industry Insights - The Zacks Retail – Apparel and Shoes industry is currently ranked in the top 26% of Zacks Industry Rank, indicating a favorable outlook compared to the broader market [7] - Consumer confidence is under pressure due to macroeconomic uncertainties, leading to a shift towards value-driven purchases, impacting demand in the apparel and footwear sectors [5][6]

Core Insights - On Holding (ONON) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price [1][2] - Analysts are increasingly optimistic about the company's earnings prospects, leading to higher estimates that correlate with stock price movements [2][3] Current-Quarter Estimate Revisions - For the current quarter, On Holding is expected to earn $0.26 per share, reflecting a decrease of 31.6% from the previous year [7] - Over the last 30 days, three estimates have increased while two have decreased, resulting in a 69.71% increase in the Zacks Consensus Estimate [7] Current-Year Estimate Revisions - The full-year earnings estimate stands at $0.96 per share, indicating a decline of 12.7% from the prior year [8] - The current year's revisions show a positive trend, with six estimates moving higher and one lower, leading to a 90.39% increase in the consensus estimate [8][9] Favorable Zacks Rank - The positive estimate revisions have earned On Holding a Zacks Rank 1 (Strong Buy), indicating strong potential for stock performance [10] - Research indicates that stocks with a Zacks Rank 1 and 2 significantly outperform the S&P 500 [10] Bottom Line - Investors are showing confidence in On Holding due to its strong estimate revisions, as evidenced by a 9.9% stock gain over the past four weeks [11] - The company's earnings growth prospects suggest potential for further stock price increases, making it a candidate for portfolio consideration [11]

Core Insights - On Holding AG (ONON) has experienced a significant decline in market value, falling close to 25% since early January [1] Financial Performance - The latest quarterly performance and Q3 numbers have been reviewed, indicating a need for further analysis on the company's financial health [1]

Core Insights - On Holding AG (ONON) has experienced a significant decline in market value, falling close to 25% since early January [1] Financial Performance - The latest quarterly performance and Q3 numbers have been reviewed, indicating a need for further analysis on the company's financial health [1]

Core Insights - The holiday sales season for 2025-26 in the U.S. is crucial, with Thanksgiving and Black Friday being key days for consumer spending [2] - Despite a challenging economic environment, holiday sales are expected to grow, albeit at a muted rate, leading to recommendations for five apparel and shoe stocks with strong short-term upside potential [3][10] Industry Overview - Consumer spending is the largest component of U.S. GDP, and the holiday season represents the peak period for this spending [3] - The apparel and footwear industry is facing challenges as consumers shift towards value-driven purchases, impacting demand [6] - The Zacks Retail – Apparel and Shoes industry ranks in the top 26% of Zacks Industry Rank, indicating potential for outperformance in the next three to six months [7] Company Highlights Crocs Inc. (CROX) - Crocs has a Zacks Rank of 1 and is experiencing significant growth in brand awareness through collaborations and product innovations [11] - The company is refreshing its product lines and has an expected revenue growth rate of 0.4% and earnings growth rate of 3.9% for the next year [14] - The short-term average price target for CROX indicates an 11.2% increase from its last closing price of $83.07 [14] On Holding AG (ONON) - On Holding also holds a Zacks Rank of 1, focusing on ultralight footwear and sports apparel [15] - The expected revenue growth rate is 21.2% and earnings growth rate is 79.8% for the next year [16] - The short-term average price target suggests a 45.3% increase from the last closing price of $41.78 [16] Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and has outperformed the industry due to its strategic "Next Great Chapter: Accelerate Plan" [17] - The company is investing in digital transformation, with expected revenue growth of 9.5% and earnings growth of 25% for the current year [20] - The short-term average price target indicates a 3.3% increase from the last closing price of $364.50 [20] Kontoor Brands Inc. (KTB) - Kontoor Brands, with a Zacks Rank of 2, operates lifestyle apparel brands like Wrangler and Lee [22] - The expected revenue growth rate is 11.3% and earnings growth rate is 5.3% for the next year [23] - The short-term average price target suggests a 31% increase from the last closing price of $73.69 [23] Boot Barn Holdings Inc. (BOOT) - Boot Barn Holdings has a Zacks Rank of 2 and focuses on western and work-related footwear and apparel [24] - The expected revenue growth rate is 16.2% and earnings growth rate is 20.5% for the current year [25] - The short-term average price target indicates a 15% increase from the last closing price of $195.76 [25]

Group 1 - Major indexes are at robust levels, but small- and mid-cap growth stocks are struggling to maintain performance as the end of 2025 approaches [1] - Gary Alexander has extensive experience in technology companies and has been a contributor on Seeking Alpha since 2017, providing insights into industry themes [1] Group 2 - The article does not provide specific investment recommendations or advice regarding the suitability of investments for particular investors [2][3]