Telsey Advisory Group analyst Cristina Fernández said that On Holding’s second quarter got off to a good start, led by the launches of Cloud 6 and Cloudsurfer 2, and ongoing marketing campaigns.
Roger Federer-backed On Holding (ONON) saw retail user count jump 800% on Stocktwits in the last 24 hours as of Friday morning, ahead of its quarterly results next week, as analysts and investors are keeping a close watch on potential gains from ongoing marketing initiatives.
Shares of On were marginally up during midday trading but have lost nearly 17% so far this year. Retail sentiment trended in the ‘bullish’ territory while message volume on the stock was at ‘normal’ levels, according to data from Stocktwits.
Telsey Advisory Group analyst Cristina Fernández said that On’s second quarter got off to a good start, led by the launches of Cloud 6 and Cloudsurfer 2, and ongoing marketing campaigns, such as with Actor Zendaya and the Super Bowl, that raised brand awareness in the past year.
Along with Deckers Outdoor’s (DECK) Hoka, On has been gaining market share in the running category over the last couple of years, giving tough competition to Nike, which is currently trying to turn the business around under new CEO Elliott Hill.
Fernández noted that relative to the first quarter, the brokerage expects a slower growth rate in the second quarter due to a more limited slate of releases and greater foreign exchange pressure due to the strength of the Swiss franc versus the U.S. dollar.
She added that increases in tariffs on U.S. imports from Vietnam and Indonesia are also an incremental headwind for the second half of 2025. Vietnam accounts for 90% of On’s footwear imports, while Indonesia accounts for 10%.
Another round of price increases will likely be needed in early 2026 to mitigate tariff impact after the price hike undertaken in early July in the U.S. for most of its footwear, Fernández said.
On is expected to post second-quarter revenue of CHF 704.31 million ($872.15 million) and earnings per share (EPS) of CHF 0.21 ($0.26), according to data from Fiscal AI. A Stocktwits user noted that On has still 10 years of growth left.
On stock has gained over 13% in the last 12 months.
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