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Is On Holding a Buy, Hold or Sell After a 35% Jump in the Past Month?
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Key Takeaways
On Holding stock jumped 34.5% in a month, beating its industry and outperforming key footwear peers.
DTC sales rose 27.6%, while apparel sales surged 86.9% with more than 1M units sold in a single quarter.
APAC sales grew 109.2% in Q3, nearing 20% of total sales, led by strong demand in China, Korea and Japan.
On Holding AG (ONON - Free Report) has emerged as one of the standout performers in the athletic footwear and apparel space, soaring 34.5% over the past month. The company continues to gain traction with consumers through its premium brand positioning, innovation-led product pipeline and expanding global reach. Yet, after such a sharp run-up in a short period, investors are now facing a key question: Is ONON still a buy at these levels, or is it time to reassess the risk-reward profile?
ONON Stock Past Month Performance
ONON has comfortably outpaced the Zacks Retail - Apparel and Shoes industry’s rise of 17.5%. The company’s operational capabilities have also helped it outperform the broader Retail and Wholesale sector, which posted a decline of 1.2%.
Image Source: Zacks Investment Research
ONON Stock’s Peer Group Performance
On Holding has even outperformed its peers, such as Deckers Outdoor Corporation (DECK - Free Report) , Wolverine World Wide, Inc. (WWW - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) . Shares of Deckers, Wolverine and Boot Barn have risen 26.8%, 6.8% and 5.7%, respectively.
Closing yesterday’s trading session at $47.02, shares of On Holding are currently trading below the 52-week high of $64.05 attained on Jan. 30, 2025.
Image Source: Zacks Investment Research
Decoding Potential Tailwinds Behind On Holding’s Rally
On Holding has successfully established its position in the competitive athletic footwear and apparel market, showcasing brand strength and a stronger financial standing. For investors looking for industry exposure, On Holding offers a compelling investment case, driven by product innovation, strategic distribution and global expansion. Momentum in apparel, strong demand through the direct-to-consumer (DTC) channel, and rapid growth in the Asia-Pacific (APAC) region highlight ONON’s consistent performance and potential for market capture.
Management aims to shift its business model toward higher-margin channels. Net sales through the DTC channel increased 27.6% on a reported basis and 37.5% on a constant-currency basis in the third quarter of 2025. This compares to wholesale sales, which grew 23.3% on a reported basis and 32.5% in constant currency. The rapid growth in DTC sales caused a slight but meaningful change in the sales mix, with DTC accounting for 39.6% of total net sales, up from 38.8% last year. DTC is growing faster, offering the company better unit economics and higher gross margins. This ecosystem strengthens customer relationships and boosts lifetime value.
Beyond footwear, ONON's expansion into apparel represents another growth avenue. The apparel segment has reached new sales volumes, significantly expanding the company's total addressable market and reducing reliance on the seasonal nature of the running shoe business. Management describes apparel as a “company within the company,” emphasizing its strategic importance and role in attracting first-time buyers who then expand their purchases into other categories. Apparel sales increased 86.9% in the third quarter, and the company sold more than 1 million apparel units in a single quarter for the first time.
The brand's rapidly growing presence in the APAC region provides an important component of geographic diversification. APAC delivered another quarter of triple-digit constant-currency growth of 109.2% in the third quarter, contributing CHF 144.9 million and now nearing 20% of total sales. Management highlighted broad-based strength across Greater China, South Korea and Japan, as well as record store openings, including the Ginza flagship in Tokyo. APAC’s expansion gives ONON access to younger, design-conscious customers and reduces geographic concentration risk.
ONON’s ability to maintain its premium brand status is supported by a powerful mix of elite athlete victories and high-profile cultural moments. These events not only enhance the product's credibility but also increase cultural relevance and justify the brand's premium pricing across different demographics. This momentum is backed by a strong innovation pipeline, with championship-level proprietary technology like LightSpray set to be commercialized in upcoming models such as the Cloudmonster Hyper. This advanced technology and product roadmap, which includes future versions of key franchises like the Cloudrunner, supports premium pricing and helps protect profit margins.
What to Expect From On Holding in Fiscal 2025?
Following the outstanding third quarter, management raised its full-year 2025 guidance across all key metrics, signaling strong confidence. On Holding now expects net sales to grow 34% year over year on a constant-currency basis, up from the earlier estimate of 31%. The outlook suggests reported net sales of CHF 2.98 billion compared to the previous projection of CHF 2.91 billion. The current outlook also points to at least 23% sales growth in 2026. The company raised the full-year gross profit margin outlook to approximately 62.5%, up from the prior projected range of 60.5%-61%.
Here’s How Estimates Stack Up for ONON
Reflecting the positive sentiment around On Holding, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, the consensus estimates for both the current and next fiscal years have risen by 31 cents to 96 cents and $1.72 per share, respectively.
Image Source: Zacks Investment Research
Is the Premium Valuation Justified for ONON Stock?
On Holding is currently trading at a premium. However, this elevated valuation is not without merit. With a forward 12-month price-to-earnings (P/E) ratio of 28.11, below the median level of 49.38 observed in the past year, On Holding demonstrates its appeal to investors seeking growth opportunities. Moreover, when compared with the industry's forward 12-month P/E ratio of 18.03, On Holding’s higher valuation reflects its position as a standout performer in the market.
This premium positioning is especially notable when compared to peers like Deckers (with a forward 12-month P/E ratio of 15.15), Wolverine (12.86) and Boot Barn (25.75).
Image Source: Zacks Investment Research
ONON Stock: Buy the Rally or Wait for a Pullback?
In spite of the recent rally in the stock price, On Holding still deserves a place in your portfolio. The company is establishing itself as a premium, innovation-driven brand supported by a strengthening direct-to-consumer channel, an expanding apparel business and a robust product pipeline. Its global footprint continues to increase, and the brand’s cultural relevance and athlete-backed credibility reinforce pricing power and demand. For investors, the stock’s recent strength reflects increasing confidence in the company’s strategies. ONON currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Is On Holding a Buy, Hold or Sell After a 35% Jump in the Past Month?
Key Takeaways
On Holding AG (ONON - Free Report) has emerged as one of the standout performers in the athletic footwear and apparel space, soaring 34.5% over the past month. The company continues to gain traction with consumers through its premium brand positioning, innovation-led product pipeline and expanding global reach. Yet, after such a sharp run-up in a short period, investors are now facing a key question: Is ONON still a buy at these levels, or is it time to reassess the risk-reward profile?
ONON Stock Past Month Performance
ONON has comfortably outpaced the Zacks Retail - Apparel and Shoes industry’s rise of 17.5%. The company’s operational capabilities have also helped it outperform the broader Retail and Wholesale sector, which posted a decline of 1.2%.
Image Source: Zacks Investment Research
ONON Stock’s Peer Group Performance
On Holding has even outperformed its peers, such as Deckers Outdoor Corporation (DECK - Free Report) , Wolverine World Wide, Inc. (WWW - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) . Shares of Deckers, Wolverine and Boot Barn have risen 26.8%, 6.8% and 5.7%, respectively.
Closing yesterday’s trading session at $47.02, shares of On Holding are currently trading below the 52-week high of $64.05 attained on Jan. 30, 2025.
Image Source: Zacks Investment Research
Decoding Potential Tailwinds Behind On Holding’s Rally
On Holding has successfully established its position in the competitive athletic footwear and apparel market, showcasing brand strength and a stronger financial standing. For investors looking for industry exposure, On Holding offers a compelling investment case, driven by product innovation, strategic distribution and global expansion. Momentum in apparel, strong demand through the direct-to-consumer (DTC) channel, and rapid growth in the Asia-Pacific (APAC) region highlight ONON’s consistent performance and potential for market capture.
Management aims to shift its business model toward higher-margin channels. Net sales through the DTC channel increased 27.6% on a reported basis and 37.5% on a constant-currency basis in the third quarter of 2025. This compares to wholesale sales, which grew 23.3% on a reported basis and 32.5% in constant currency. The rapid growth in DTC sales caused a slight but meaningful change in the sales mix, with DTC accounting for 39.6% of total net sales, up from 38.8% last year. DTC is growing faster, offering the company better unit economics and higher gross margins. This ecosystem strengthens customer relationships and boosts lifetime value.
Beyond footwear, ONON's expansion into apparel represents another growth avenue. The apparel segment has reached new sales volumes, significantly expanding the company's total addressable market and reducing reliance on the seasonal nature of the running shoe business. Management describes apparel as a “company within the company,” emphasizing its strategic importance and role in attracting first-time buyers who then expand their purchases into other categories. Apparel sales increased 86.9% in the third quarter, and the company sold more than 1 million apparel units in a single quarter for the first time.
The brand's rapidly growing presence in the APAC region provides an important component of geographic diversification. APAC delivered another quarter of triple-digit constant-currency growth of 109.2% in the third quarter, contributing CHF 144.9 million and now nearing 20% of total sales. Management highlighted broad-based strength across Greater China, South Korea and Japan, as well as record store openings, including the Ginza flagship in Tokyo. APAC’s expansion gives ONON access to younger, design-conscious customers and reduces geographic concentration risk.
ONON’s ability to maintain its premium brand status is supported by a powerful mix of elite athlete victories and high-profile cultural moments. These events not only enhance the product's credibility but also increase cultural relevance and justify the brand's premium pricing across different demographics. This momentum is backed by a strong innovation pipeline, with championship-level proprietary technology like LightSpray set to be commercialized in upcoming models such as the Cloudmonster Hyper. This advanced technology and product roadmap, which includes future versions of key franchises like the Cloudrunner, supports premium pricing and helps protect profit margins.
What to Expect From On Holding in Fiscal 2025?
Following the outstanding third quarter, management raised its full-year 2025 guidance across all key metrics, signaling strong confidence. On Holding now expects net sales to grow 34% year over year on a constant-currency basis, up from the earlier estimate of 31%. The outlook suggests reported net sales of CHF 2.98 billion compared to the previous projection of CHF 2.91 billion. The current outlook also points to at least 23% sales growth in 2026. The company raised the full-year gross profit margin outlook to approximately 62.5%, up from the prior projected range of 60.5%-61%.
Here’s How Estimates Stack Up for ONON
Reflecting the positive sentiment around On Holding, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, the consensus estimates for both the current and next fiscal years have risen by 31 cents to 96 cents and $1.72 per share, respectively.
Image Source: Zacks Investment Research
Is the Premium Valuation Justified for ONON Stock?
On Holding is currently trading at a premium. However, this elevated valuation is not without merit. With a forward 12-month price-to-earnings (P/E) ratio of 28.11, below the median level of 49.38 observed in the past year, On Holding demonstrates its appeal to investors seeking growth opportunities. Moreover, when compared with the industry's forward 12-month P/E ratio of 18.03, On Holding’s higher valuation reflects its position as a standout performer in the market.
This premium positioning is especially notable when compared to peers like Deckers (with a forward 12-month P/E ratio of 15.15), Wolverine (12.86) and Boot Barn (25.75).
Image Source: Zacks Investment Research
ONON Stock: Buy the Rally or Wait for a Pullback?
In spite of the recent rally in the stock price, On Holding still deserves a place in your portfolio. The company is establishing itself as a premium, innovation-driven brand supported by a strengthening direct-to-consumer channel, an expanding apparel business and a robust product pipeline. Its global footprint continues to increase, and the brand’s cultural relevance and athlete-backed credibility reinforce pricing power and demand. For investors, the stock’s recent strength reflects increasing confidence in the company’s strategies. ONON currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.