In the world of high-end retail, innovation and performance are key.

The story of On Holdings (ONON), a company that has revolutionized the footwear industry, is a testament to this truth. Founded by Iron Man World Champion Olivier Bernhard and backed by tennis legend Roger Federer, ONON has become synonymous with quality, comfort, and cutting-edge technology.

A Journey from Achilles Pain to Victory

Olivier Bernhard's career was plagued by Achilles pain. But rather than succumb to his injuries, he co-founded ONON, a company that would go on to create shoes with unique cloud-tech technology. These aren't just any shoes; they're designed with hollow pockets in the soles, providing cushion and bounce that athletes and casual wearers alike have come to love.

A Winning Streak 

ONON's success isn't limited to its innovative technology. The company has made repeat appearances on the podium at prestigious events like the July 2023 USA Track and Field Outdoor Championships and the French Open. With top finishers in various races and a win in the Boston Marathon, ONON is nearly on par with athletic giant Nike (NKE). 

A Strong Financial Performance

LikeFolio members have witnessed impressive gains with ONON, booking more than +126% since our bullish call last fall. Despite concerns of excess inventory following its last earnings report in May, the stock has rebounded, propelled by upgrades and proven performance.

Direct-to-consumer sales are strong, with US web visits rising by +74% YoY in the quarter.

Leading the Pack

ONON is not just surviving; it's thriving. It leads more established peers in demand, with mentions rising +41% YoY, and even outpaces sustainable peer BIRD (BIRD). Consumer happiness stands at 79% positive, a clear indication of customer satisfaction.

Innovation and Market Share

The company's recent running launches, including the Cloudsurfer, Cloudmonster, Cloudrunner, and CloudGo, are stealing market share. These products, launched within the last year, now make up 45% of ONON's sales at leading US running store franchise fleet. The rollout of the Cloudboom Echo 3 to a broader audience in July further cements ONON's position in the market.

Bottom Line

ONON is proving itself to consumers. It's not just about sustainability or feel-good products; ONON wins high marks in comfort and performance.

Going into earnings, our short term score is neutral +15, mostly due to a slowdown in growth as the company laps tough comps.

However, this is still a leader in the pack, and we expect continued market share steal. We love picking this up on dips. Long-term Bullish.

In the world of retail, where trends come and go, ONON stands as a beacon of innovation and success. Its story is a reminder that with the right combination of technology, performance, and determination, a company can rise to the top and stay there.