On Holding Reports 35.6% Sales Growth but Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy ONON?
Source: NASDAQ.COM
- Significant Sales Growth: On Holding reported a 35.6% year-over-year sales increase, surpassing 3 billion Swiss francs (approximately $3.84 billion) for the first time, although it fell short of analysts' expectations of 3.7 billion francs.
- Industry-Leading Profit Margins: The company's gross profit margin rose to 62.8%, positioning it as a leader in the industry, indicating strong brand value and consumer willingness to pay full price, which helped avoid the holiday discount pressures faced by competitors.
- Stock Price Volatility Opportunity: Despite a 14.3% drop in stock price following the earnings report, currently down about 10% from last year, this presents a buying opportunity for investors, especially given its strong brand influence and market recognition.
- Cautious Future Outlook: While revenue is projected to approach 3.5 billion Swiss francs by 2026, the failure to meet market expectations necessitates caution among investors, particularly as analysts did not include it in their list of top investment stocks.
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: 34.770
Low
30.00
Averages
60.79
High
85.00
Current: 34.770
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.
Amazon Leverages AI to Boost Online Sales Growth
- Amazon Sales Recovery: Amazon's online store achieved $269 billion in sales for 2025, reflecting a 9% year-over-year increase, indicating a rebound after a sluggish period, with advertising, subscription, and cloud services also contributing to a total revenue growth of 12% to $716 billion.
- Lululemon's International Strength: Despite pressure in the North American market, Lululemon's international revenue grew 17% year-over-year, with China alone seeing a 24% increase, showcasing the effectiveness of its localized product strategy and suggesting significant long-term growth potential.
- On Holding's Growth Momentum: On Holding's Cloud footwear line has quadrupled its annual revenue since 2021, with a 23% year-over-year revenue increase last quarter and a record gross margin of 64%, highlighting its strong pricing power even amid weak consumer spending.
- Nike's Challenges: Nike's stock has fallen about 70% from its peak, yet many companies in the retail sector continue to post relatively strong financial results while facing macroeconomic pressures, suggesting that investors should focus on businesses with multiple growth engines.
See More
Nike's Stock Decline Highlights Retail Winners Like Amazon and Lululemon
- Nike's Stock Decline: Nike's (NKE) stock has fallen about 70% over the past few years, primarily due to self-inflicted issues and softer consumer spending, which has pressured sales and negatively impacted share performance.
- Amazon's Market Leadership: Amazon (AMZN) became the top apparel seller in 2018, and in 2025, its online store sales rose 9% year-over-year to $269 billion, showcasing its robust fulfillment network and AI technology that enhance customer loyalty and drive sales growth.
- Lululemon's International Expansion: Lululemon (LULU) has shown strong performance in international markets, particularly in China where revenue grew 24% year-over-year, contrasting with Nike's 7% decline in the same region, indicating Lululemon's effective localization strategy and significant long-term growth potential.
- On Holding's Growth Potential: On Holding (ONON) has seen its Cloud footwear franchise revenue quadruple since 2021, with a 23% year-over-year revenue increase last quarter despite weak consumer spending, and a gross margin of 64%, highlighting its superior pricing power and attractive long-term growth outlook.
See More
Nike's Earnings Fall Short of Expectations, Stock Plummets
- Earnings Performance: Nike's Q3 revenue remained flat at $11.28 billion, down 3% in constant currency, slightly exceeding the market expectation of $11.23 billion; however, the overall performance failed to boost market confidence, leading to a 9% drop in after-hours trading, hovering near an eight-year low.
- Gross Margin Decline: Gross margin fell by 130 basis points to 40.2%, primarily due to tariffs in North America, while selling, general, and administrative expenses rose 2% to $3.98 billion, resulting in a 23% decline in operating income to $635 million, reflecting pressure on the company's cost control efforts.
- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles are expected to reduce revenue by over $4 billion, with this strategy causing a five-point headwind on revenue in the quarter, highlighting the lengthy road ahead for Nike's turnaround.
- Cautious Future Outlook: Management forecasts a revenue decline of 2%-4% in Q4, with growth in North America but continued declines in China and Converse, casting a dim overall outlook; investors should monitor the target for gross margin recovery in Q2 FY2027, as failure to achieve this may significantly impact Nike's turnaround plans.
See More
Nike Reports Flat Revenue and Declining Profits Amidst Tariff Pressures
- Flat Financial Performance: Nike reported revenue of $11.28 billion, down 3% in constant currency, slightly above the market expectation of $11.23 billion; however, the overall performance failed to excite investors, leading to a 9% drop in after-hours trading, hovering near an eight-year low.
- Declining Gross Margin: Gross margin fell by 130 basis points to 40.2%, primarily due to tariff impacts in North America, while selling, general, and administrative expenses rose 2% to $3.98 billion, resulting in a 23% decline in operating income to $635 million, reflecting challenges in cost management.
- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles negatively impacted revenue by five percentage points this quarter, with expectations of reducing over $4 billion in revenue from classic footwear franchises, highlighting difficulties in Nike's turnaround process.
- Cautious Future Outlook: Nike anticipates a revenue decline of 2%-4% in the fourth quarter; while North America shows growth, ongoing declines in China and Converse cast a shadow on the overall outlook, with management projecting a return to gross margin growth only by Q2 2027, disappointing investors.
See More
Nike Faces Challenges as Stock Drops Nearly 60%
- Stagnant Sales Growth: Nike's revenue growth flatlined in fiscal 2024 as declining sales in North America and a strong dollar offset gains in China and other overseas markets, leading to increased market pressure on the company.
- Declining Gross Margin: The gross margin dropped from 43.5% in fiscal 2023 to 42.7% in fiscal 2025, as Nike relied on markdowns to boost sales and reduce inventory, resulting in a significant drop in EPS from $3.23 to $2.16, reflecting a decline in profitability.
- Intensified Market Competition: Nike is at a disadvantage against competitors like Adidas, On Holding, and Lululemon, particularly as the latter began selling its own branded shoes in 2022, further eroding Nike's market share.
- Strategic Adjustments: Nike is attempting to stabilize its business by increasing the sales mix of full-price and premium products, launching new marketing campaigns, and rebuilding relationships with wholesale retailers, although it still relies on markdowns for short-term sales boosts.
See More
Johnson Fistel Investigates On Holding AG for Potential Investor Claims
- Executive Changes Impact: On Holding AG announced that co-founders David Allemann and Caspar Coppetti will serve as Co-CEOs, Scott Maguire was promoted to President & COO, and CEO Martin Hoffmann will step down on May 1, 2026, leading to market concerns and a subsequent decline in stock price.
- Stock Price Decline: Following the executive changes announcement, On Holding's stock price dropped, reflecting investor apprehension regarding the uncertainty of the company's future leadership and potential risks that may affect its performance in a competitive market.
- Legal Investigation Initiated: Johnson Fistel is investigating whether On Holding complied with federal securities laws, particularly regarding the executive changes and their impact on investor losses, aiming to seek compensation for affected investors.
- Investor Rights Protection: The law firm is recognized for its success in securities class actions, having recovered approximately $90.725 million for clients, demonstrating its capability and influence in advocating for investor rights.
See More
Amazon Leverages AI to Boost Online Sales Growth
- Amazon Sales Recovery: Amazon's online store achieved $269 billion in sales for 2025, reflecting a 9% year-over-year increase, indicating a rebound after a sluggish period, with advertising, subscription, and cloud services also contributing to a total revenue growth of 12% to $716 billion.
- Lululemon's International Strength: Despite pressure in the North American market, Lululemon's international revenue grew 17% year-over-year, with China alone seeing a 24% increase, showcasing the effectiveness of its localized product strategy and suggesting significant long-term growth potential.
- On Holding's Growth Momentum: On Holding's Cloud footwear line has quadrupled its annual revenue since 2021, with a 23% year-over-year revenue increase last quarter and a record gross margin of 64%, highlighting its strong pricing power even amid weak consumer spending.
- Nike's Challenges: Nike's stock has fallen about 70% from its peak, yet many companies in the retail sector continue to post relatively strong financial results while facing macroeconomic pressures, suggesting that investors should focus on businesses with multiple growth engines.
See More
Nike's Stock Decline Highlights Retail Winners Like Amazon and Lululemon
- Nike's Stock Decline: Nike's (NKE) stock has fallen about 70% over the past few years, primarily due to self-inflicted issues and softer consumer spending, which has pressured sales and negatively impacted share performance.
- Amazon's Market Leadership: Amazon (AMZN) became the top apparel seller in 2018, and in 2025, its online store sales rose 9% year-over-year to $269 billion, showcasing its robust fulfillment network and AI technology that enhance customer loyalty and drive sales growth.
- Lululemon's International Expansion: Lululemon (LULU) has shown strong performance in international markets, particularly in China where revenue grew 24% year-over-year, contrasting with Nike's 7% decline in the same region, indicating Lululemon's effective localization strategy and significant long-term growth potential.
- On Holding's Growth Potential: On Holding (ONON) has seen its Cloud footwear franchise revenue quadruple since 2021, with a 23% year-over-year revenue increase last quarter despite weak consumer spending, and a gross margin of 64%, highlighting its superior pricing power and attractive long-term growth outlook.
See More
Nike's Earnings Fall Short of Expectations, Stock Plummets
- Earnings Performance: Nike's Q3 revenue remained flat at $11.28 billion, down 3% in constant currency, slightly exceeding the market expectation of $11.23 billion; however, the overall performance failed to boost market confidence, leading to a 9% drop in after-hours trading, hovering near an eight-year low.
- Gross Margin Decline: Gross margin fell by 130 basis points to 40.2%, primarily due to tariffs in North America, while selling, general, and administrative expenses rose 2% to $3.98 billion, resulting in a 23% decline in operating income to $635 million, reflecting pressure on the company's cost control efforts.
- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles are expected to reduce revenue by over $4 billion, with this strategy causing a five-point headwind on revenue in the quarter, highlighting the lengthy road ahead for Nike's turnaround.
- Cautious Future Outlook: Management forecasts a revenue decline of 2%-4% in Q4, with growth in North America but continued declines in China and Converse, casting a dim overall outlook; investors should monitor the target for gross margin recovery in Q2 FY2027, as failure to achieve this may significantly impact Nike's turnaround plans.
See More
Nike Reports Flat Revenue and Declining Profits Amidst Tariff Pressures
- Flat Financial Performance: Nike reported revenue of $11.28 billion, down 3% in constant currency, slightly above the market expectation of $11.23 billion; however, the overall performance failed to excite investors, leading to a 9% drop in after-hours trading, hovering near an eight-year low.
- Declining Gross Margin: Gross margin fell by 130 basis points to 40.2%, primarily due to tariff impacts in North America, while selling, general, and administrative expenses rose 2% to $3.98 billion, resulting in a 23% decline in operating income to $635 million, reflecting challenges in cost management.
- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles negatively impacted revenue by five percentage points this quarter, with expectations of reducing over $4 billion in revenue from classic footwear franchises, highlighting difficulties in Nike's turnaround process.
- Cautious Future Outlook: Nike anticipates a revenue decline of 2%-4% in the fourth quarter; while North America shows growth, ongoing declines in China and Converse cast a shadow on the overall outlook, with management projecting a return to gross margin growth only by Q2 2027, disappointing investors.
See More
Nike Faces Challenges as Stock Drops Nearly 60%
- Stagnant Sales Growth: Nike's revenue growth flatlined in fiscal 2024 as declining sales in North America and a strong dollar offset gains in China and other overseas markets, leading to increased market pressure on the company.
- Declining Gross Margin: The gross margin dropped from 43.5% in fiscal 2023 to 42.7% in fiscal 2025, as Nike relied on markdowns to boost sales and reduce inventory, resulting in a significant drop in EPS from $3.23 to $2.16, reflecting a decline in profitability.
- Intensified Market Competition: Nike is at a disadvantage against competitors like Adidas, On Holding, and Lululemon, particularly as the latter began selling its own branded shoes in 2022, further eroding Nike's market share.
- Strategic Adjustments: Nike is attempting to stabilize its business by increasing the sales mix of full-price and premium products, launching new marketing campaigns, and rebuilding relationships with wholesale retailers, although it still relies on markdowns for short-term sales boosts.
See More
Johnson Fistel Investigates On Holding AG for Potential Investor Claims
- Executive Changes Impact: On Holding AG announced that co-founders David Allemann and Caspar Coppetti will serve as Co-CEOs, Scott Maguire was promoted to President & COO, and CEO Martin Hoffmann will step down on May 1, 2026, leading to market concerns and a subsequent decline in stock price.
- Stock Price Decline: Following the executive changes announcement, On Holding's stock price dropped, reflecting investor apprehension regarding the uncertainty of the company's future leadership and potential risks that may affect its performance in a competitive market.
- Legal Investigation Initiated: Johnson Fistel is investigating whether On Holding complied with federal securities laws, particularly regarding the executive changes and their impact on investor losses, aiming to seek compensation for affected investors.
- Investor Rights Protection: The law firm is recognized for its success in securities class actions, having recovered approximately $90.725 million for clients, demonstrating its capability and influence in advocating for investor rights.
See More
