Apparel companies posting strong performance in Q2 2025
This article is part of the Q2 2025 apparel industry report.
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Based on financial reporting in the second quarter of 2025, several companies demonstrated exceptional performance, defying broader market challenges through strong brand identity, strategic expansion, and operational efficiency. Here are the standout financial performers:
Footwear and athleisure powerhouses
The athletic and comfort footwear sector was a consistent bright spot, with several brands reporting significant double-digit growth.
- Deckers Brands: The company delivered an exceptional fiscal year 2025, with net sales surging 16.3% to 4.99 billion dollars. This performance was driven by the phenomenal growth of its Hoka (up 23.6 percent) and UGG (up 13.1 percent) brands. The momentum continued into the first quarter of fiscal 2026 with a 16.9% increase in net sales.
- Amer Sports, Inc.: The parent of Arc’teryx, Salomon, and Wilson reported a robust 23% revenue increase to 1.24 billion dollars in the second quarter. Profitability saw a significant boost, with adjusted operating profit rising 130 percent, leading the company to raise its full-year outlook.
- Wolverine World Wide, Inc.: The footwear supplier announced surprisingly strong second-quarter growth, with consolidated revenue up 11.5% to 474.2 million dollars. The increase was fuelled by double-digit growth at its core brands, Merrell (up 10.7 percent) and Saucony (up 41.5 percent), helping to more than double its earnings per share.
- On Holding AG: The Swiss sportswear brand continued its rapid ascent, reporting a 32% sales increase to 749 million Swiss francs in the second quarter. Despite a net loss due to negative currency effects, the company raised its annual sales forecast based on strong operational performance and demand.
Resilient luxury and premium brands
While the broader luxury market faced headwinds, several brands distinguished themselves with strong results, often driven by a clear brand vision and loyal customer base.
- Hermès International S.A.: The French luxury house continued to outperform the sector, reporting a seven% sales increase in the first half of the year. Its Americas region grew by 6.3% in the second quarter, demonstrating resilience even after implementing price increases to offset US tariffs.
- Brunello Cucinelli S.p.A.: The Italian luxury brand reported a 10.2% increase in revenue for the first half of 2025, reaching 684 million euros. The company confirmed its full-year forecast for 10% revenue growth, citing strong performance across all geographical areas.
- Prada Group: Group revenues for the first half of 2025 increased by nine% to 2.74 billion euros. This growth was overwhelmingly driven by its Miu Miu brand, which saw a remarkable 49% year-on-year increase in retail sales, highlighting its powerful connection with younger consumers.
- Tapestry, Inc.: The group exceeded expectations in its fourth quarter, with revenue increasing eight% to 1.72 billion dollars, driven by a strong 14% rise at its flagship Coach brand. Despite a net loss due to one-off charges, the company’s operational performance prompted a positive outlook for the upcoming fiscal year.
Value and accessible fashion leaders
In an environment of cautious consumer spending, companies offering a strong value proposition performed well.
- Inditex Group: For its 2024 fiscal year, the Spanish fashion giant reported record sales of 38.63 billion euros (up 7.46 percent) and a net profit of 5.87 billion euros (up 8.93 percent), demonstrating its continued market dominance despite a moderation in its growth rate.
- Fast Retailing Co. Ltd.: The parent company of Uniqlo confirmed its record-year forecasts after reporting a 10.6% revenue increase to 2.62 trillion Japanese yen for the first nine months of its fiscal year. Net profit grew by 8.4 percent, driven by strong international performance.
- TJX Companies Inc.: The off-price retailer reported a five% revenue increase to 13.1 billion dollars for its first quarter, with like-for-like sales growing by three percent, underscoring the strength of the value retail model.
Direct-to-consumer and niche successes
Several brands demonstrated the power of a focused direct-to-consumer strategy and strong community engagement.
- Adanola: The British athleisure brand secured a significant minority investment from Story3 Capital Partners that valued the company at 530 million dollars, reflecting its rapid traction and viral success, particularly in the UK and US markets.
- Footasylum: For its fiscal year 2025, the UK retailer reported a 9.4% revenue increase to 349.5 million pounds. Profitability improved dramatically, with profit before tax surging 188 percent, driven by strong growth in its exclusive brands and omnichannel model.
- Seasalt: The Cornish lifestyle brand reported a 13% revenue increase to 150 million pounds for its 2024 fiscal year, with growth across all channels. International sales were a key driver, now representing 11% of total revenue.
- SportsShoes.com: The online running specialist reported a four% sales increase to 93.3 million pounds for its fiscal year, with a 13.3% rise in EBITDA, crediting its success to digital innovation and a strong connection with the running community.
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