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On Holding, Grocery Outlet, and Birkenstock lag despite resilient fundamentals
On Holding shares are down nearly 35% year to date, and the article cites tariffs and foreign exchange headwinds behind a weaker Q2 revenue print, even as DTC sales rose more than 34% year over year.
MarketBeat Ratings highlights three growth-oriented stocks trading below their recent highs, arguing that each company still shows underlying fundamentals such as improving margins or healthy revenue trends after the latest earnings season.
On Holding AG is cited as a case where results looked weak at first glance after its Q2 earnings release. The outlet attributes the softer quarter to headwinds including tariffs and foreign exchange conversion issues, while noting direct-to-consumer sales grew more than 34% year over year during the quarter.
MarketBeat Ratings also points to margin momentum at On, saying gross margin expanded to 65.4% in the latest quarter and the adjusted EBITDA margin increased as well. It adds that management raised full-year margin predictions, while the stock is described as down almost 35% year to date and trading around 21 times earnings.
The article frames Grocery Outlet Holding Corp and Birkenstock Group AG as similarly overlooked, though it does not provide additional quarter level figures in the provided text beyond that the moves stem from internal factors or a broader macro environment. It concludes that patient investors may see a positive repricing if fundamentals continue to hold up.