Luxury and consumer-focused companies are showing that sales growth is still possible despite persistent macro pressure from inflation and higher consumer prices. Tapestry, On Holding, and SharkNinja each reported strong momentum, with results pointing to brand strength, product innovation, and continued demand across regions.
Analysts also appear to be viewing the companies’ valuations as comparatively supportive, with each name trading at a stated forward price-to-earnings level that the report characterized as reasonable—leaving room for further execution-driven upside.
Key takeaways
- Tapestry showed pro forma net sales growth and rising adjusted profitability, reflecting Coach’s continued traction with younger shoppers.
- On Holding reported constant-currency revenue growth and improving gross margin, suggesting demand supported more full-price sales.
- SharkNinja sustained double-digit sales growth, supported by diversification across cleaning, cooking, and beauty categories.
- Catalyst across the set: continued execution against brand and product strategies in the face of inflation-related headwinds.
- Implication: investors may be able to look past macro friction where growth rates remain resilient and margins improve.
What drove the strongest results
Tapestry’s performance was anchored by Coach, which the report said represents 88% of the company’s total sales. The company beat expectations in the recent quarter, with pro forma net sales up 25% year over year and adjusted earnings up 62%, according to the article.
The report linked the growth to management decisions aimed at shifting resources toward the Coach brand. Tapestry sold the Stuart Weitzman business last year, and management has been investing in Coach since, it said. It also noted a steady improvement in gross profit margin over the past three years—an indicator the report treated as evidence of brand strength and pricing power.
On Holding’s quarter highlighted a similar demand-driven theme, the report said. Constant-currency revenue rose 26% year over year in the first quarter, and gross margin increased by four percentage points over the past year to 64.2% in Q1 2026, according to the article. The report interpreted the margin improvement as a sign the brand is achieving more full-price sales rather than relying on discounting.
For On, channel mix also stood out. Direct-to-consumer revenue grew faster than wholesale, up 29% on a constant-currency basis last quarter, the report said, suggesting more customers are finding the brand online.
SharkNinja, meanwhile, was framed as executing through category diversification. Despite the inflationary environment highlighted in the report, the company delivered double-digit sales growth for the past two years, with revenue increasing 15% year over year in the first quarter, according to the article. The report said SharkNinja’s portfolio spans cleaning, cooking, and beauty products, which it argued reduces reliance on any single product cycle.
Within that mix, the report cited momentum for Luxe Cafe coffee machines and cleaning products globally, and it also pointed to Shark Beauty as performing well with additional launches planned over the next year.
Market reaction and how investors may interpret it
While the article did not describe intraday trading moves or sector-wide reactions, it emphasized that consumer goods growth can persist when companies combine brand leverage with disciplined product and margin management. That framing is particularly relevant in a market where inflation and other macro headwinds have made it harder for many companies to sustain sales expansion.
For investors, the common thread across the three names is that growth appears tied to operational indicators—margin expansion at On, sustained double-digit revenue growth at SharkNinja, and improving gross profit margin alongside profitability gains at Tapestry—rather than one-off demand. The report also suggested that these are not merely cyclical spikes but reflect longer-running execution, such as On’s multi-year high double-digit sales growth and Tapestry’s emphasis on emotional customer connections to increase repeat purchases and lifetime value.
The article further suggested that valuations are not stretched relative to the companies’ growth profiles. It characterized the forward price-to-earnings multiples as “reasonable” for each company, citing a forward P/E of 18 for Tapestry, 21 for On Holding, and 21 for SharkNinja.
Analyst view and what to watch next
The report included forward-looking expectations, citing analyst estimates for earnings growth for each company. For Tapestry, it said analysts expect adjusted earnings per share to grow 13% on an annualized basis over the coming years, with recent estimates increasing. For On Holding, it cited the gross margin trajectory and continued global expansion, including presence in more than 90 countries. For SharkNinja, it said analysts expect earnings to grow by more than 18% annually over the coming years.
Next, investors will likely focus on whether these companies can maintain momentum as price-sensitive consumers navigate higher household costs. Key watch items include: continued gross margin progression at On, sustained Coach brand strength and repeat purchasing at Tapestry, and whether SharkNinja’s multi-category expansion continues to offset any softness in specific product groups.
More broadly, investors should monitor upcoming company updates and macro signals that influence consumer demand—particularly inflation data and interest-rate expectations, which can affect discretionary spending and retailer behavior.
