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]

Core Insights - Markets are facing challenges in maintaining record highs as the end of 2025 approaches, despite major indexes being at strong levels [1] Group 1: Market Performance - Small- and mid-cap growth stocks are not experiencing the same buoyancy as larger stocks, indicating a divergence in market performance [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor on Seeking Alpha since 2017 and has been featured in various web publications, with his articles reaching popular trading apps like Robinhood [1]

Core Insights - The Swiss company On has surpassed Nike in terms of growth and market presence, indicating a significant shift in the competitive landscape of the athletic footwear industry [1] - On is now focusing on overcoming tariff challenges, which could impact its pricing strategy and market expansion plans [1] Company Performance - On's revenue growth has been impressive, with a reported increase of 70% year-over-year, showcasing its strong market demand and brand appeal [1] - The company has successfully positioned itself as a premium brand, attracting a loyal customer base and increasing its market share [1] Industry Trends - The athletic footwear industry is experiencing heightened competition, with brands like On challenging established players such as Nike and Adidas [1] - Tariffs and trade policies are becoming critical factors for companies in the industry, influencing their operational strategies and pricing models [1]

Core Insights - Visa is a leading player in the digital payments industry, benefiting from a strong network effect and an asset-light business model that allows for high profit margins [4][6][8] - The company has a significant global presence with 4.8 billion payment credentials and acceptance at over 150 million merchants, making it the most widely held and accepted card [4][5] - The growth of digital payments presents substantial opportunities for Visa, especially as many regions still operate primarily on cash [8][9] Group 1 - Visa's network effect incentivizes merchants to accept its cards, enhancing its market position [4][5] - The asset-light business model enables Visa to expand its reach without heavy investment in customer acquisition or infrastructure [6][8] - Visa's competitive advantages include strong cash flow and a proven track record, making it a favorable long-term investment [8] Group 2 - The ongoing transition from cash to digital payments positions Visa to capitalize on future growth opportunities [9] - Visa's operational margins are among the highest in the industry, allowing it to maintain a competitive edge [7][8]

Core Viewpoint - On Holding is adopting a full-price strategy for the holiday season, opting out of Black Friday discounts to reinforce its premium brand positioning [1][2]. Company Performance - On Holding reported Q3 net sales of 794.4 million Swiss francs ($994.3 million) and a net income of 118.9 million francs, significantly up from 30.5 million francs in the same quarter last year [4]. - The company raised its full-year sales guidance from 2.91 billion francs to 2.98 billion francs, indicating strong performance and optimism [4]. Competitive Landscape - Competitors like Adidas and Nike are engaging in early Black Friday promotions, contrasting with On's strategy [2]. - Nike anticipates a decrease in fiscal Q2 revenue and a drop in gross margins, with Q1 net income down 31% year over year [5]. - HOKA, owned by Deckers, is also promoting discounted holiday gifts, reflecting a different approach compared to On [3]. Market Trends - Deckers' brands, HOKA and UGG, saw sales increases of 11.1% and 10.1% year over year, while other brands under Deckers experienced a 26.5% decrease [7]. - Tariffs are influencing sales guidance adjustments for Nike and Deckers, as rising prices are affecting consumer purchasing behavior [8].