On Holding Is Down Over 50% From Its All-Time High. Is a Push Into Football and Golf the Key to Unlocking Faster Growth?
On Holding just signed Kylian Mbappé and is launching into golf, but its own 2029 targets say the real growth engine is still running shoes.
Overview
On Holding AG (NYSE: ONON), the Swiss running and sports shoe brand known for its cushioned Cloud sneakers, is down about 52% from the all-time high it hit in January 2025. That's a steep fall for a company that's still growing sales at a pace most retailers would envy.
The stock's problem isn't that On stopped growing; it's that growth has been decelerating from truly exceptional to merely very good, and Wall Street priced the stock for the former. On's answer has been to open two entirely new categories, football and golf, built around one of the biggest athlete signings in years.
Details
On's second-quarter net sales rose 21.6% in constant currency, a number most apparel companies would celebrate, but it missed analyst expectations, and On trimmed its full-year growth outlook to the low-20% range from a prior floor of 23%. None of that signals a broken business, but it does mean the market, which had treated On like a company that could only accelerate, is now pricing in a more normal deceleration curve.
Source
Originally published at www.fool.com.