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On Holding vs. Boot Barn: Which Footwear Stock Looks Better Placed?
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Key Takeaways
ONON's DTC sales jumped 26%, with the channel reaching a record 45.7% of second-quarter sales.
ONON's Asia-Pacific sales rose 43.1%, while apparel sales advanced 47.7% in the quarter.
BOOT's sales climbed 17.7% as new stores, positive comparable sales and e-commerce supported growth.
On Holding AG (ONON - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) are two footwear players pursuing growth through different markets and business models. ONON is expanding its global premium sportswear brand through innovative running shoes, apparel and direct-to-consumer (DTC) channels, while BOOT is growing its U.S. western and workwear business through new stores, online sales and a broader product assortment. The key question for investors is which company offers the more compelling opportunity now.
The Case for On Holding
On Holding continues to expand its premium athletic footwear business through its DTC channel. Second-quarter 2026 DTC sales increased 26% to CHF 388.4 million, or 34.3% on a constant-currency basis and reached a second-quarter record of 45.7% of total sales. Strong demand across its own stores and online channels gives On Holding greater control over the customer experience and supports its strategy of selling products at full price. The stronger DTC mix helped lift gross margin to 65.4% from 61.5% a year earlier.
International expansion provides another growth avenue. Asia-Pacific sales rose 43.1% to CHF 170.5 million in the second quarter or 54.7% at constant currency, accounting for more than 20% of global sales. Momentum across Japan, South Korea and Greater China underscores the brand’s growing reach beyond its established markets. On Holding has expanded its retail presence, opening its first stores in Sao Paulo and Copenhagen, giving customers more opportunities to engage with its products directly.
On Holding is broadening its product portfolio beyond footwear. Apparel sales grew 47.7% to CHF 54.2 million in the quarter or 56.2% at constant currency, as the company gained traction across running, training and tennis. Apparel growth gives On Holding another way to increase customer spending and deepen its presence in premium sportswear. A wider assortment also supports the company’s own stores and online platform, creating more opportunities to serve customers across activities.
Product innovation remains central to On Holding’s premium positioning. At its Running Summit, the company highlighted the recently launched Cloudboom Strike 2 and unveiled SURREAL superfoam, which is planned for the Cloudsurfer 3. On Holding is also expanding the commercial use of its LightSpray technology across running products. These launches can refresh core franchises and support full-price demand. Management’s 2026 outlook calls for net sales growth in the low-20% range at constant currency, a gross margin of at least 65% and an adjusted EBITDA margin of 19.5% to 20%, reflecting its expectations for continued premium growth.
On Holding’s wholesale business presents a clear near-term challenge. Second-quarter wholesale sales rose only 4.8% on a reported basis, well below the 26% increase in DTC sales, as management deliberately limited shipments in a promotional marketplace to protect full-price selling and prepare for new products. Reported sales in the Americas grew just 4.5% compared with 43.1% in Asia-Pacific and currency movements weighed on reported growth. Management expects its wholesale restraint to continue into the second half, which could constrain reported sales even if demand through its own channels remains strong.
The Case for Boot Barn
Boot Barn continues to expand its national store footprint, a key driver of its growth in western and work-related footwear and apparel. The company opened 27 stores in the first quarter of fiscal 2027, bringing its total to 566 locations across 49 states. Management said new stores continue to perform above expectations and plans to open 70 locations during the fiscal year. A larger store base gives Boot Barn more opportunities to serve customers and grow sales in markets where its physical presence is still developing.
Demand at existing stores is also contributing to the retailer’s performance. First-quarter sales rose 17.7% to $593.5 million, supported by 4.7% growth in consolidated same-store sales. Retail store comparable sales increased 3.8%, showing that growth was not driven solely by new locations. Boot Barn’s combination of store openings and positive comparable sales provides two avenues for expansion, although preliminary July comparable sales were approximately flat.
Boot Barn’s e-commerce business is adding another growth driver. Online comparable sales rose 13.4% in the first quarter, with management citing double-digit growth on bootbarn.com. The retailer is working to connect its digital and physical channels more closely, while online shopping gives customers access to a broader assortment. Continued e-commerce gains could complement its expanding store network and strengthen customer engagement across channels.
The company’s workwear strategy broadens its appeal beyond western fashion. Management pointed to healthy demand in work-related products and is enhancing in-store merchandising and marketing for work customers. Exclusive brands remain an important part of Boot Barn’s assortment, although management expects their share of sales to be roughly flat or slightly lower this fiscal year as the product mix changes. Greater reach across western and work categories can help the retailer serve a wider range of customer needs.
Management’s updated fiscal 2027 outlook calls for sales of $2.58 billion to $2.63 billion, representing year-over-year growth of 14% to 16%, and EPS of $8.80 to $9.23. The company expects same-store sales growth of 2% to 4%. First-quarter gross margin improved to 40.4% from 39.1%, but tariff refunds contributed $14.7 million to gross profit and 38 cents to quarterly EPS. The company’s full-year EPS outlook includes an estimated 46-cent refund benefit. With new stores, comparable sales, e-commerce and workwear all contributing, Boot Barn has several levers to support growth across the fiscal year.
How Does the Zacks Consensus Estimate Compare for ONON & BOOT?
The Zacks Consensus Estimate for On Holding’s current financial-year sales and EPS implies growth of 15.6% and 77.3%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 22.6% rise in sales and 16.1% growth in earnings. The consensus estimates for EPS for the current and next fiscal year have decreased 4 cents and 14 cents, respectively, over the past 60 days to $1.72 and $2.00, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate implies that Boot Barn’s current fiscal-year sales will increase 15.8% and EPS will rise 23.5% from year-ago actuals. For the next fiscal year, the consensus estimate indicates 12.4% growth in sales and 10.3% growth in earnings. The consensus EPS estimates for the current and next fiscal years have increased 54 cents and 10 cents over the past 60 days to $9.08 and $10.02, respectively.
Image Source: Zacks Investment Research
Stock Performance of ONON & BOOT
Shares of On Holding have plunged 34.4% in the year-to-date period, whereas Boot Barn has dipped 28.6%. Meanwhile, the Zacks Retail – Apparel and Shoes industry saw a decline of 18.6% in the same time frame. While both stocks have trailed the broader industry, BOOT’s comparatively narrower decline offers a modest relative advantage in terms of recent stock-price performance.
Image Source: Zacks Investment Research
Stock Valuations of ONON & BOOT
On Holding is trading at a forward price-to-sales (P/S) multiple of 3.94X, down from its one-year median of 5.08X. Boot Barn’s forward 12-month P/S multiple sits at 1.38X, lower than its one-year median of 1.98X.
Image Source: Zacks Investment Research
ONON or BOOT: Which Is the Better Bet Now?
While On Holding benefits from strong DTC demand, international expansion and product innovation, Boot Barn currently appears to be the better bet. Its new stores are adding sales alongside growth at existing locations, while e-commerce and workwear offer further opportunities. Rising earnings estimates, a lower valuation and relatively better share performance reinforce its case. On Holding’s slower wholesale growth and downward estimate revisions make its near-term outlook less compelling. Boot Barn’s tariff refund temporarily boosted earnings, so that benefit should be viewed with caution. Even so, its combination of operating momentum, favorable estimate trends and a more attractive valuation gives it the edge.
On Holding currently carries a Zacks Rank #5 (Strong Sell), whereas Boot Barn currently has a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Shutterstock
On Holding vs. Boot Barn: Which Footwear Stock Looks Better Placed?
Key Takeaways
On Holding AG (ONON - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) are two footwear players pursuing growth through different markets and business models. ONON is expanding its global premium sportswear brand through innovative running shoes, apparel and direct-to-consumer (DTC) channels, while BOOT is growing its U.S. western and workwear business through new stores, online sales and a broader product assortment. The key question for investors is which company offers the more compelling opportunity now.
The Case for On Holding
On Holding continues to expand its premium athletic footwear business through its DTC channel. Second-quarter 2026 DTC sales increased 26% to CHF 388.4 million, or 34.3% on a constant-currency basis and reached a second-quarter record of 45.7% of total sales. Strong demand across its own stores and online channels gives On Holding greater control over the customer experience and supports its strategy of selling products at full price. The stronger DTC mix helped lift gross margin to 65.4% from 61.5% a year earlier.
International expansion provides another growth avenue. Asia-Pacific sales rose 43.1% to CHF 170.5 million in the second quarter or 54.7% at constant currency, accounting for more than 20% of global sales. Momentum across Japan, South Korea and Greater China underscores the brand’s growing reach beyond its established markets. On Holding has expanded its retail presence, opening its first stores in Sao Paulo and Copenhagen, giving customers more opportunities to engage with its products directly.
On Holding is broadening its product portfolio beyond footwear. Apparel sales grew 47.7% to CHF 54.2 million in the quarter or 56.2% at constant currency, as the company gained traction across running, training and tennis. Apparel growth gives On Holding another way to increase customer spending and deepen its presence in premium sportswear. A wider assortment also supports the company’s own stores and online platform, creating more opportunities to serve customers across activities.
Product innovation remains central to On Holding’s premium positioning. At its Running Summit, the company highlighted the recently launched Cloudboom Strike 2 and unveiled SURREAL superfoam, which is planned for the Cloudsurfer 3. On Holding is also expanding the commercial use of its LightSpray technology across running products. These launches can refresh core franchises and support full-price demand. Management’s 2026 outlook calls for net sales growth in the low-20% range at constant currency, a gross margin of at least 65% and an adjusted EBITDA margin of 19.5% to 20%, reflecting its expectations for continued premium growth.
On Holding’s wholesale business presents a clear near-term challenge. Second-quarter wholesale sales rose only 4.8% on a reported basis, well below the 26% increase in DTC sales, as management deliberately limited shipments in a promotional marketplace to protect full-price selling and prepare for new products. Reported sales in the Americas grew just 4.5% compared with 43.1% in Asia-Pacific and currency movements weighed on reported growth. Management expects its wholesale restraint to continue into the second half, which could constrain reported sales even if demand through its own channels remains strong.
The Case for Boot Barn
Boot Barn continues to expand its national store footprint, a key driver of its growth in western and work-related footwear and apparel. The company opened 27 stores in the first quarter of fiscal 2027, bringing its total to 566 locations across 49 states. Management said new stores continue to perform above expectations and plans to open 70 locations during the fiscal year. A larger store base gives Boot Barn more opportunities to serve customers and grow sales in markets where its physical presence is still developing.
Demand at existing stores is also contributing to the retailer’s performance. First-quarter sales rose 17.7% to $593.5 million, supported by 4.7% growth in consolidated same-store sales. Retail store comparable sales increased 3.8%, showing that growth was not driven solely by new locations. Boot Barn’s combination of store openings and positive comparable sales provides two avenues for expansion, although preliminary July comparable sales were approximately flat.
Boot Barn’s e-commerce business is adding another growth driver. Online comparable sales rose 13.4% in the first quarter, with management citing double-digit growth on bootbarn.com. The retailer is working to connect its digital and physical channels more closely, while online shopping gives customers access to a broader assortment. Continued e-commerce gains could complement its expanding store network and strengthen customer engagement across channels.
The company’s workwear strategy broadens its appeal beyond western fashion. Management pointed to healthy demand in work-related products and is enhancing in-store merchandising and marketing for work customers. Exclusive brands remain an important part of Boot Barn’s assortment, although management expects their share of sales to be roughly flat or slightly lower this fiscal year as the product mix changes. Greater reach across western and work categories can help the retailer serve a wider range of customer needs.
Management’s updated fiscal 2027 outlook calls for sales of $2.58 billion to $2.63 billion, representing year-over-year growth of 14% to 16%, and EPS of $8.80 to $9.23. The company expects same-store sales growth of 2% to 4%. First-quarter gross margin improved to 40.4% from 39.1%, but tariff refunds contributed $14.7 million to gross profit and 38 cents to quarterly EPS. The company’s full-year EPS outlook includes an estimated 46-cent refund benefit. With new stores, comparable sales, e-commerce and workwear all contributing, Boot Barn has several levers to support growth across the fiscal year.
How Does the Zacks Consensus Estimate Compare for ONON & BOOT?
The Zacks Consensus Estimate for On Holding’s current financial-year sales and EPS implies growth of 15.6% and 77.3%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 22.6% rise in sales and 16.1% growth in earnings. The consensus estimates for EPS for the current and next fiscal year have decreased 4 cents and 14 cents, respectively, over the past 60 days to $1.72 and $2.00, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate implies that Boot Barn’s current fiscal-year sales will increase 15.8% and EPS will rise 23.5% from year-ago actuals. For the next fiscal year, the consensus estimate indicates 12.4% growth in sales and 10.3% growth in earnings. The consensus EPS estimates for the current and next fiscal years have increased 54 cents and 10 cents over the past 60 days to $9.08 and $10.02, respectively.
Image Source: Zacks Investment Research
Stock Performance of ONON & BOOT
Shares of On Holding have plunged 34.4% in the year-to-date period, whereas Boot Barn has dipped 28.6%. Meanwhile, the Zacks Retail – Apparel and Shoes industry saw a decline of 18.6% in the same time frame. While both stocks have trailed the broader industry, BOOT’s comparatively narrower decline offers a modest relative advantage in terms of recent stock-price performance.
Image Source: Zacks Investment Research
Stock Valuations of ONON & BOOT
On Holding is trading at a forward price-to-sales (P/S) multiple of 3.94X, down from its one-year median of 5.08X. Boot Barn’s forward 12-month P/S multiple sits at 1.38X, lower than its one-year median of 1.98X.
Image Source: Zacks Investment Research
ONON or BOOT: Which Is the Better Bet Now?
While On Holding benefits from strong DTC demand, international expansion and product innovation, Boot Barn currently appears to be the better bet. Its new stores are adding sales alongside growth at existing locations, while e-commerce and workwear offer further opportunities. Rising earnings estimates, a lower valuation and relatively better share performance reinforce its case. On Holding’s slower wholesale growth and downward estimate revisions make its near-term outlook less compelling. Boot Barn’s tariff refund temporarily boosted earnings, so that benefit should be viewed with caution. Even so, its combination of operating momentum, favorable estimate trends and a more attractive valuation gives it the edge.
On Holding currently carries a Zacks Rank #5 (Strong Sell), whereas Boot Barn currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.