On Holding AG (ONON): A Bull Case Theory

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On Holding AG (NYSE: ONON) is simply a Swiss premium sportswear institution founded successful 2010, built astir its proprietary CloudTec® cushioning technology, which enhances moving performance. The institution has expanded globally, selling products successful implicit 80 countries done a premix of direct-to-consumer and wholesale channels, with flagship stores successful Zurich, New York, Tokyo, and Palo Alto. Footwear remains the halfway gross driver, portion premium apparel and accessories, present contributing astir 7% of sales, are increasing rapidly, with apparel up 86.9% year-over-year successful Q3 2025.

On reported CHF 794.4 cardinal successful nett income successful Q3 2025, up 24.9% YoY, driven by broad-based request crossed regions and channels, with Asia-Pacific expanding implicit 90% and providing important semipermanent maturation optionality. The institution maintains a constrictive economical moat done proprietary technology, premium marque positioning, precocious gross margins of 65.7%, and deepening direct-to-consumer engagement, which enhances lawsuit loyalty and switching costs.

Management, led by CEO/CFO Martin Hoffmann, emphasizes disciplined superior allocation, investing successful innovation, marque marketing, and DTC infrastructure portion keeping indebtedness constricted and holding CHF 961.8 cardinal successful cash. On’s planetary expansion, beardown profitability, operational efficiency, and marque credibility, reinforced by elite jock partnerships, presumption it good against larger competitors specified arsenic Nike, Adidas, HOKA, and Lululemon.

The banal trades adjacent its just worth with a PEG ratio of 1.18, supported by projected EPS maturation of 25–26% implicit the adjacent 5 years. With expanding geographic penetration, class diversification, and beardown margins, On presents a compelling semipermanent concern opportunity, offering some maturation imaginable and constricted downside hazard for investors seeking a premium, high-performance sportswear business.

Previously, we covered a bullish thesis on On Holding AG (ONON) by Sanjiv successful October 2024, which highlighted the company’s accelerated planetary expansion, innovative CloudTec® technology, increasing direct-to-consumer channel, and beardown gross maturation with premium pricing. ONON’s banal terms has depreciated by astir 10.13% since our coverage. Dan shares a akin presumption but emphasizes improving profitability, disciplined superior allocation, precocious gross margins, and Asia-Pacific expansion, providing a much elaborate position connected semipermanent operational efficiency.