Luxury retail is flexing its strength again. Despite concerns about a slowing consumer, the latest earnings reports show high-end shoppers are still spending, driving strong results for brands catering to the premium and luxury market.

This trend bodes well for our LikeFolio positions in On Holding (ONON) and Lululemon (LULU) ahead of their upcoming earnings reports.

Here’s what we’re watching…

Recent Earnings Confirm Strength at the Top

Last week, Ralph Lauren (RL), Tapestry (TPR – Coach, Kate Spade, Stuart Weitzman), and even struggling Peloton (PTON) all posted better-than-expected earnings. Each company raised guidance, citing sustained demand from affluent shoppers.

You can see an overview of earnings — and a (sustained) jump higher in stock price — on the notes and charts below:

• Ralph Lauren (RL): Delivered an 11% revenue jump, hitting $2.14 billion, beating estimates. Management raised its full-year growth outlook to 6%-7% from the prior 3%-4% range, pointing to luxury consumers’ resilience.

  

• Tapestry (TPR): Reported record holiday sales, up 5% YoY to $2.2 billion, with Coach leading the way (+10%). The company boosted its full-year EPS guidance to $4.85-$4.90.

  

• Peloton (PTON): While revenue fell 9% YoY, cost reductions led to improved margins and free cash flow turning positive. Management slightly raised full-year revenue guidance, showing stabilization.

  

These results confirm that premium and luxury consumers continue spending, defying broader retail softness.

That’s exactly the kind of backdrop we want heading into ONON and LULU’s next earnings reports.

ONON & LULU: Positioned for Outperformance?

Both On Holding and Lululemon have strong momentum heading into earnings, supported by LikeFolio data and broader consumer trends.

On Holding (ONON): Earnings Preview

• Stock Performance: +153% since our entry

• Web Traffic: +32% since March* (noting March due to a domain change)

• Next Earnings Report: March 4, 2025

On Running continues to see explosive demand for its premium athletic footwear. Sales grew 34% YoY last quarter, and the company reaffirmed its full-year guidance for 30%+ revenue growth. LikeFolio data shows consumer interest is still growing, bolstered by new product drops and the company’s expansion into apparel—web traffic to On’s site is up 32% from a year ago. This signals continued demand that could drive another strong quarter.

The key question for investors: Can ONON keep delivering high growth while improving margins? Especially with the stock — and expectations — so high.

Last quarter, earnings missed estimates due to high investment costs, despite record revenue. Management needs to balance scaling up with profitability, but if Q4 numbers come in strong, the stock has room to run.

Lululemon (LULU): Earnings Preview

• Stock Performance: +6% since our entry

• Web Traffic: +11% YoY

• Next Earnings Report: March 6, 2025

Lululemon has been a powerhouse in premium activewear. Last quarter, revenue grew 9% YoY, and management raised holiday-quarter guidance, now expecting 11%-12% growth. The company has steadily expanded internationally, with strong performance in China and Europe.

LikeFolio data shows consumer engagement remains high, with Lululemon’s web traffic up 12% in the last month, following a strong holiday performance. Investors will be watching margins closely—LULU has held an industry-leading ~20% operating margin, and recent reports suggest the company has effectively managed inventory levels, reducing the need for excessive discounting.

Investor Takeaways

1. Luxury demand remains strong – Recent earnings confirm premium consumers are still spending.

2. ONON & LULU have momentum – Both brands are seeing rising web traffic and solid fundamentals.

3. Earnings beats could fuel further gains – Both stocks have room to move if results come in strong.

For CROX, Tomorrow Is Make or Break

We were a first mover in the luxury shoe market, and it has paid off handsomely.

Our bullish buy alert for On Holding (ONON), the high-end running shoemaker, has delivered +150% for our subscribers since January 2023.

Footwear is kind of our thing – after all, consumers LOVE to talk about their favorite shoes, especially on social media.

We've watched another quirky favorite, Crocs (CROX), go from laughingstock to big-time stock – handing subscribers a 52% profit last year.

But while ONON has largely trended higher, CROX has suffered, currently trading more than 40% below its June 2024 peak amid an aggressive market selloff.

With shares trading at 52-week lows, tomorrow morning’s fourth-quarter earnings announcement is sure to be a make-or-break moment for CROX.

The bar is low.

But the company needs to deliver.

Here’s what we think will be the deal-breaker…

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