Why On Stock Dropped 19% in February
On Holding (NYSE: ONON) stock dropped 19% in February according to data provided by S&P Global Market Intelligence. There wasn't any news specific to On in the month, but there have been market fears about tariffs, and stocks often fall in anticipation of an upcoming earnings report. Spoiler alert: The report, released yesterday, was outstanding.On is a Swiss-based athletic wear company that's competing in the premium space. Its original Cloud-tech footwear has a distinctive sole that's meant to provide incredible comfort, and it's establishing a strong global brand presence.It's gotten an extremely positive reception, and it's growing quickly. In the 2024 fourth quarter, sales increased 40% year over year (currency neutral), driven by a 48% increase in direct-to-consumer sales. Although it's known for its footwear, apparel and accessories are growing at an even higher rate: Shoe sales increased 39% year over year in the quarter, while apparel increased 83% and accessories increased 86%. That's a great indication that customers are loving the brand. It has a curated list of celebrity endorsers, starting with Roger Federer, who is an investor in the company, and its partnership with Zendaya has put in on the map with a general audience.Continue reading
On Holding (NYSE: ONON) stock dropped 19% in February according to data provided by S&P Global Market Intelligence. There wasn't any news specific to On in the month, but there have been market fears about tariffs, and stocks often fall in anticipation of an upcoming earnings report. Spoiler alert: The report, released yesterday, was outstanding.
On is a Swiss-based athletic wear company that's competing in the premium space. Its original Cloud-tech footwear has a distinctive sole that's meant to provide incredible comfort, and it's establishing a strong global brand presence.
It's gotten an extremely positive reception, and it's growing quickly. In the 2024 fourth quarter, sales increased 40% year over year (currency neutral), driven by a 48% increase in direct-to-consumer sales. Although it's known for its footwear, apparel and accessories are growing at an even higher rate: Shoe sales increased 39% year over year in the quarter, while apparel increased 83% and accessories increased 86%. That's a great indication that customers are loving the brand. It has a curated list of celebrity endorsers, starting with Roger Federer, who is an investor in the company, and its partnership with Zendaya has put in on the map with a general audience.
