The S&P 500 is hitting record highs, but several quality growth stocks, including On Holding AG (NYSE: ONON), Grocery Outlet Holding Corp. (NASDAQ: GO), and Birkenstock Group AG (NYSE: BIRK), are struggling due to ongoing operational challenges. On Holding’s shares are down nearly 35% year-to-date despite a 34% year-over-year growth in direct-to-consumer sales, driven by strong customer loyalty. The company reported a gross margin of 65.4% in its latest quarter.
Grocery Outlet’s stock has increased over 9% year-to-date but is down about 40% from last year, as it faces integration issues post-acquisition. The company’s unique business model could become advantageous as consumer spending tightens, especially with its recent closure of 36 underperforming stores aimed at reducing annual adjusted EBITDA drag. Revenue growth for the last quarter was modest at 1%.
Birkenstock’s shares have fallen nearly 16% year-to-date, yet most analysts still recommend the stock. The company’s latest quarter indicated strong demand for new products, despite challenges like rising costs and tariffs. However, opportunities for growth, particularly in the Asian market, remain as the brand retains a strong reputation.
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