Nike CEO: Company Must Regain Shelf Space Amid Intense Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 21 2025
0mins
Should l Buy ONON?
Source: CNBC
Nike's Comeback Strategy: Nike is attempting a comeback under CEO Elliott Hill, focusing on innovation and rebuilding consumer trust after significant market value loss and competition from emerging brands.
Reorganization Around Sports: Hill has reorganized the company to focus on individual sports rather than product categories, aiming to enhance competitiveness against rivals like On Running and Hoka.
Challenges from Past Decisions: Analysts highlight that Nike's previous shift to prioritize direct-to-consumer sales over wholesalers led to a loss of market share, which the company is now working to regain.
Current Obstacles: Nike faces challenges such as clearing excess inventory and managing $1.5 billion in tariff-related costs while striving to innovate and improve sales.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ONON?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ONON
Wall Street analysts forecast ONON stock price to rise
21 Analyst Rating
18 Buy
2 Hold
1 Sell
Strong Buy
Current: 46.760
Low
30.00
Averages
60.79
High
85.00
Current: 46.760
Low
30.00
Averages
60.79
High
85.00
About ONON
On Holding AG is a Switzerland-based company active in athletic sports accesories industry. The Company provides footwear and sports apparel and is engaged in developing and distributing performance sports products, through independent retailers and global distributors. The Company sells its products trough the internet and its own stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
On Holding Scheduled to Announce Q4 Earnings on March 3
- Earnings Announcement: On Holding is set to announce its Q4 earnings on March 3 before market open, with consensus EPS estimate at $0.28, reflecting a 15.2% year-over-year decline, while revenue is expected to reach $946.37 million, indicating a robust 56.0% year-over-year growth, which could significantly impact the company's stock performance.
- Historical Performance: Over the past two years, On Holding has surpassed EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's financial stability and fostering market confidence in its operations.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and two downward adjustments, while revenue estimates experienced five upward revisions and two downward adjustments, indicating mixed analyst sentiment that could influence investor decisions.
- Competitive Landscape: To tackle high labor costs and tariffs, On Holding has implemented robotic technology in its plants, which not only reduces operational costs but also strengthens its competitive position against giants like Nike and Adidas.
See More
Nike Faces Growth Stagnation and Competitive Pressure
- Performance Decline: Nike's stock price has dropped by 50% over the past three years while the S&P 500 has risen by 70%, indicating significant underperformance in the market, driven by stalled sales growth and declining margins in North America and Europe.
- Revenue Growth Struggles: Despite aiming for $50 billion in revenue by fiscal 2020, Nike only achieved $37.4 billion, primarily hindered by sluggish North American sales, weak demand for Converse products, and pandemic-related impacts, resulting in unmet growth expectations.
- Intensifying Competition: In fiscal 2024, Nike's revenue growth flatlined due to declining sales in North America and fierce currency headwinds, compounded by increased competition from Adidas and On Holding, forcing Nike to rely more on markdowns to drive sales.
- Future Outlook: Analysts project that from fiscal 2025 to 2028, Nike will achieve revenue and EPS growth rates of 3% and 10%, respectively, although its stock remains expensive, with expected gains of less than 10% over the next three years, potentially trailing the S&P 500's average annual return.
See More
On Holdings Revenue Guidance Falls Short of Expectations
- Revenue Guidance Shortfall: On Holdings (ONON) issued a revenue guidance for FY26 that fell short of analysts' expectations, raising concerns about potential growth slowdown, leading to an opening share price drop of over 11%.
- Profit Decline: The company's net income margin decreased from 14.8% last year to 9.3%, with both unadjusted and adjusted earnings per share declining by approximately 20% to CHF0.21 and CHF0.25, respectively, indicating a significant reduction in profitability.
- Strong Sales Growth: Despite the profit decline, On Holdings generated CHF743.8M ($947.3M) in sales for Q4, a 23% year-over-year increase that slightly exceeded expectations of CHF743.1M, while gross profit margin improved by 180 basis points to 63.9%.
- Regional Performance Disparities: Sales in the Asia-Pacific region soared over 85%, significantly outperforming gains in the Americas (+21.3%) and EMEA (+2.5%), highlighting strong demand and potential growth opportunities in that market.
See More
AeroVironment Shares Plunge 17% Amid Contract Risk
- Contract Risk Impact: AeroVironment (AVAV) shares fell 17.4% yesterday due to the U.S. government reopening its $1.7 billion Satellite Communications Augmentation Resource (SCAR) contract, raising concerns about potential business loss and future revenue impact.
- Sector Divergence: While other defense stocks rallied, AeroVironment's decline highlights market worries over contract stability, which could undermine investor confidence and affect the company's valuation.
- Apple's New Product Launch: Apple (AAPL) is set to unveil the $599 iPhone 17e, targeting budget-conscious consumers; despite compromises in camera and display quality, this move could help expand its market share.
- On Holding Sales Guidance Downgrade: On Holding (ONON) dipped over 11% in pre-market trading after its 2026 sales guidance fell short of expectations, despite fourth-quarter earnings beating analyst forecasts, indicating market concerns about its growth potential.
See More
Target and Best Buy Beat Earnings Expectations
- Target's Strong Earnings: Target reported an adjusted earnings per share of $2.44 for Q4, exceeding analysts' expectations of $2.16, although its revenue of $30.45 billion fell slightly short of consensus, demonstrating resilience in a competitive retail environment.
- Best Buy's Robust Performance: Best Buy's adjusted earnings per share for Q4 reached $2.61, surpassing the $2.47 expected by analysts, despite revenue of $13.81 billion missing the $13.88 billion consensus, indicating sustained appeal in the electronics retail sector.
- On Holding's Disappointing Outlook: On Holding anticipates net sales growth of at least 23% by 2026, which is below the consensus estimate of 3.7 billion Swiss francs, leading to a nearly 10% drop in stock price, reflecting investor concerns about future growth.
- MongoDB's Decline: MongoDB expects first-quarter adjusted earnings per share between $1.15 and $1.19, falling short of the $1.21 forecasted by analysts, with revenue expectations also missing the mark, resulting in a more than 26% plunge in stock price, highlighting market disappointment in its growth prospects.
See More
Movers in the Market: MongoDB, Archer Aviation, Plug Power, Quantum Computing, Sandisk, Freeport-McMoRan, and Others
- Stock Market Trends: Stock futures are declining as investors express concerns over the ongoing conflict in the Middle East.
- Investor Sentiment: The uncertainty surrounding the situation is contributing to negative sentiment in the financial markets.
See More
On Holding Scheduled to Announce Q4 Earnings on March 3
- Earnings Announcement: On Holding is set to announce its Q4 earnings on March 3 before market open, with consensus EPS estimate at $0.28, reflecting a 15.2% year-over-year decline, while revenue is expected to reach $946.37 million, indicating a robust 56.0% year-over-year growth, which could significantly impact the company's stock performance.
- Historical Performance: Over the past two years, On Holding has surpassed EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's financial stability and fostering market confidence in its operations.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and two downward adjustments, while revenue estimates experienced five upward revisions and two downward adjustments, indicating mixed analyst sentiment that could influence investor decisions.
- Competitive Landscape: To tackle high labor costs and tariffs, On Holding has implemented robotic technology in its plants, which not only reduces operational costs but also strengthens its competitive position against giants like Nike and Adidas.
See More
Nike Faces Growth Stagnation and Competitive Pressure
- Performance Decline: Nike's stock price has dropped by 50% over the past three years while the S&P 500 has risen by 70%, indicating significant underperformance in the market, driven by stalled sales growth and declining margins in North America and Europe.
- Revenue Growth Struggles: Despite aiming for $50 billion in revenue by fiscal 2020, Nike only achieved $37.4 billion, primarily hindered by sluggish North American sales, weak demand for Converse products, and pandemic-related impacts, resulting in unmet growth expectations.
- Intensifying Competition: In fiscal 2024, Nike's revenue growth flatlined due to declining sales in North America and fierce currency headwinds, compounded by increased competition from Adidas and On Holding, forcing Nike to rely more on markdowns to drive sales.
- Future Outlook: Analysts project that from fiscal 2025 to 2028, Nike will achieve revenue and EPS growth rates of 3% and 10%, respectively, although its stock remains expensive, with expected gains of less than 10% over the next three years, potentially trailing the S&P 500's average annual return.
See More
On Holdings Revenue Guidance Falls Short of Expectations
- Revenue Guidance Shortfall: On Holdings (ONON) issued a revenue guidance for FY26 that fell short of analysts' expectations, raising concerns about potential growth slowdown, leading to an opening share price drop of over 11%.
- Profit Decline: The company's net income margin decreased from 14.8% last year to 9.3%, with both unadjusted and adjusted earnings per share declining by approximately 20% to CHF0.21 and CHF0.25, respectively, indicating a significant reduction in profitability.
- Strong Sales Growth: Despite the profit decline, On Holdings generated CHF743.8M ($947.3M) in sales for Q4, a 23% year-over-year increase that slightly exceeded expectations of CHF743.1M, while gross profit margin improved by 180 basis points to 63.9%.
- Regional Performance Disparities: Sales in the Asia-Pacific region soared over 85%, significantly outperforming gains in the Americas (+21.3%) and EMEA (+2.5%), highlighting strong demand and potential growth opportunities in that market.
See More
AeroVironment Shares Plunge 17% Amid Contract Risk
- Contract Risk Impact: AeroVironment (AVAV) shares fell 17.4% yesterday due to the U.S. government reopening its $1.7 billion Satellite Communications Augmentation Resource (SCAR) contract, raising concerns about potential business loss and future revenue impact.
- Sector Divergence: While other defense stocks rallied, AeroVironment's decline highlights market worries over contract stability, which could undermine investor confidence and affect the company's valuation.
- Apple's New Product Launch: Apple (AAPL) is set to unveil the $599 iPhone 17e, targeting budget-conscious consumers; despite compromises in camera and display quality, this move could help expand its market share.
- On Holding Sales Guidance Downgrade: On Holding (ONON) dipped over 11% in pre-market trading after its 2026 sales guidance fell short of expectations, despite fourth-quarter earnings beating analyst forecasts, indicating market concerns about its growth potential.
See More
Target and Best Buy Beat Earnings Expectations
- Target's Strong Earnings: Target reported an adjusted earnings per share of $2.44 for Q4, exceeding analysts' expectations of $2.16, although its revenue of $30.45 billion fell slightly short of consensus, demonstrating resilience in a competitive retail environment.
- Best Buy's Robust Performance: Best Buy's adjusted earnings per share for Q4 reached $2.61, surpassing the $2.47 expected by analysts, despite revenue of $13.81 billion missing the $13.88 billion consensus, indicating sustained appeal in the electronics retail sector.
- On Holding's Disappointing Outlook: On Holding anticipates net sales growth of at least 23% by 2026, which is below the consensus estimate of 3.7 billion Swiss francs, leading to a nearly 10% drop in stock price, reflecting investor concerns about future growth.
- MongoDB's Decline: MongoDB expects first-quarter adjusted earnings per share between $1.15 and $1.19, falling short of the $1.21 forecasted by analysts, with revenue expectations also missing the mark, resulting in a more than 26% plunge in stock price, highlighting market disappointment in its growth prospects.
See More
Movers in the Market: MongoDB, Archer Aviation, Plug Power, Quantum Computing, Sandisk, Freeport-McMoRan, and Others
- Stock Market Trends: Stock futures are declining as investors express concerns over the ongoing conflict in the Middle East.
- Investor Sentiment: The uncertainty surrounding the situation is contributing to negative sentiment in the financial markets.
See More
