Company Performance - On Holding (ONON) reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.38 per share a year ago, representing an earnings surprise of -4.17% [1] - The company posted revenues of $808.1 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.76%, compared to year-ago revenues of $581.41 million [2] - Over the last four quarters, On Holding has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Stock Performance and Outlook - On Holding shares have lost about 6.3% since the beginning of the year, while the S&P 500 has declined by -0.6% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.29 on revenues of $835.81 million, and $1.18 on revenues of $3.4 billion for the current fiscal year [7] - The current Zacks Rank for On Holding is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Retail - Apparel and Shoes industry, to which On Holding belongs, is currently in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Genesco (GCO), another company in the same industry, is expected to report a quarterly loss of $2.06 per share, with revenues projected at $463.91 million, reflecting a year-over-year increase of 1.4% [9]

Core Viewpoint - On Holding AG (ONON) is expected to report its first-quarter 2025 results on May 13, with earnings per share estimated at 24 cents, reflecting a 36.8% decline from the previous year, while revenues are projected to increase by 34% to approximately $778.9 million [1][2]. Group 1: Earnings Performance - ONON has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 45.6% [1]. - The earnings per share estimate for the first quarter indicates a significant decline compared to the same quarter last year [2]. Group 2: Revenue Expectations - The consensus revenue estimate for the first quarter is nearly $778.9 million, suggesting a 34% increase from the previous year's figure [2]. Group 3: Factors Influencing Performance - The company's performance is anticipated to benefit from strong direct-to-consumer traction, global expansion, and ongoing product innovation, particularly among younger consumers [3]. - Key product launches, including Cloudmonster, Cloudsurfer, and Cloud 6, are expected to support the company's performance [3]. Group 4: Direct-to-Consumer Strategy - ONON's direct-to-consumer strategy, which includes retail and e-commerce, is a primary growth driver, supported by high brand engagement and creative marketing campaigns [4]. - The company has leveraged significant marketing initiatives, including a Super Bowl advertisement featuring Roger Federer and Elmo, to enhance traffic and conversion rates [4]. Group 5: Geographic Performance - The Asia-Pacific region, especially China, Japan, and Southeast Asia, has shown accelerated growth due to retail expansion and targeted campaigns [5]. - In Europe, brand-building efforts and a strong retail presence in cities like Paris and Milan have contributed to performance, while in the Americas, premium positioning and selective partnerships have fueled growth [5]. Group 6: Cost Considerations - Increased investments in brand marketing and technology infrastructure may have impacted margins, alongside transitional costs from a new automated warehouse in Atlanta [6]. - Foreign exchange fluctuations, particularly between the U.S. dollar and Swiss franc, could also affect margins in the first quarter [6]. Group 7: Earnings Prediction Model - The model predicts an earnings beat for ONON, supported by a positive Earnings ESP of +4.17% and a Zacks Rank of 3 [7].

Core Insights - On Holding AG (NYSE: ONON) has experienced significant growth due to innovative and comfortable running shoe designs, leading to rapid revenue expansion and increased market share from competitors [1] Company Performance - The company's stock performance is closely tied to its ability to attract consumers through product innovation and comfort [1] Market Position - On Holding AG is successfully capturing notable market share in the running shoe industry, indicating strong competitive positioning [1]

Company Performance - On Holding (ONON) closed at $48.20, reflecting a -1.41% change from the previous day, underperforming the S&P 500, which fell by 0.77% [1] - Over the past month, shares of On Holding have increased by 19.33%, surpassing the Retail-Wholesale sector's gain of 9.54% and the S&P 500's gain of 11.54% [1] Upcoming Earnings Report - On Holding is set to release its earnings report on May 13, 2025, with an expected EPS of $0.24, indicating a 36.84% decrease from the same quarter last year [2] - The consensus estimate for revenue is $773.88 million, representing a 33.1% increase from the prior-year quarter [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $1.19 per share and revenue of $3.39 billion, reflecting changes of +8.18% and +28.48% respectively from the previous year [3] - Analysts' estimate revisions are crucial as they indicate the evolving nature of business trends, with positive revisions suggesting optimism about the company's profitability [3] Valuation Metrics - On Holding currently has a Forward P/E ratio of 41.08, which is significantly higher than the industry average Forward P/E of 13.78 [6] - The company's PEG ratio stands at 1.96, compared to the industry average PEG ratio of 1.43 [6] Industry Context - The Retail - Apparel and Shoes industry, which includes On Holding, has a Zacks Industry Rank of 186, placing it in the bottom 25% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The market anticipates On Holding (ONON) to report a year-over-year decline in earnings despite an increase in revenues when it releases its quarterly results for the period ending March 2025 [1][2]. Earnings Expectations - On Holding is expected to report earnings of $0.24 per share, reflecting a year-over-year decrease of 36.8% [3]. - Revenue projections stand at $773.88 million, which represents a 33.1% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.94% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for On Holding is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +4.17% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - On Holding currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, On Holding exceeded the expected earnings of $0.20 per share by delivering $0.38, resulting in a surprise of +90% [12]. - Over the past four quarters, On Holding has beaten consensus EPS estimates two times [13]. Industry Context - In the Zacks Retail - Apparel and Shoes industry, Tapestry (TPR) is expected to report earnings of $0.89 per share for the same quarter, reflecting a year-over-year increase of 9.9% [17]. - Tapestry's revenue is projected to be $1.53 billion, up 3.1% from the previous year [17].

Economic Overview - Low to middle-income consumers are reducing spending to pay down credit card debt, while affluent consumers continue to spend selectively [1][2] - The economy is divided, with strong revenue and earnings growth reported by many companies despite market uncertainty [2] Company Analysis: Tapestry Inc. (TPR) - Tapestry is known for luxury accessories and lifestyle products, with a current stock price of $70.65 and a price target of $78.00, indicating a 12% upside potential [3][5] - The company reported record earnings per share of $2 in Q2 FY2025 and achieved a net paydown yield of 38% over the last 12 months [4][5] - Analysts have a Moderate Buy rating on TPR, with some price targets adjusted but remaining above the consensus price [5][6] Company Analysis: On Holding AG (ONON) - On Holding specializes in high-end footwear and apparel, with a current stock price of $48.11 and a price target of $58.77, suggesting a 23% increase potential [7][10] - The company uses over 30% recycled or renewable materials in its products, appealing to younger consumers [8] - Despite a recent double beat in earnings, ONON stock is down over 13% in 2025 due to concerns over exposure to China amid tariff issues [9][10] Company Analysis: Viking Holdings Ltd. (VIK) - Viking Holdings, a newcomer in the luxury cruise market, has a current stock price of $41.02 and a price target of $46.89, indicating potential growth [12] - The company is 88% booked for 2025 and does not anticipate cancellations due to market weakness, suggesting resilience in the cruise line industry [14] - Despite volatility typical of newly public companies, VIK stock has increased nearly 50% since its launch [14]

Core Insights - On has opened its first flagship store in Chengdu, marking the end of a five-year exploration period in China [1][3] - The company plans to expand its store count in China to over 100 by 2026, currently operating 66 stores [1][3] - On's new Cloudboom Strike LS shoe, featuring innovative LightSpray™ technology, aims to enhance production efficiency and comfort [5][6] Group 1: Store Expansion - The flagship store in Chengdu covers 500 square meters and showcases a variety of products for different sports [1][3] - On's strategy emphasizes the need for more self-operated retail stores in China, moving away from reliance on wholesale channels [3] - The company aims to open more flagship stores in both China and other regions in the future [1][3] Group 2: Product Innovation - The Cloudboom Strike LS is the first mass-produced racing shoe using LightSpray™, a technology that simplifies the manufacturing process [5][6] - The shoe weighs only 170 grams, making it lighter than competitors, which is crucial for professional runners [6] - On's team has developed a unique formula for the shoe's material, enhancing durability and comfort [5] Group 3: Financial Performance - On's annual compound growth rate from 2021 to 2024 exceeds 47% [7] - In 2024, the company reported a net revenue of 2.318 billion Swiss francs (approximately 19 billion RMB), a year-on-year increase of 29.4% [7] - The net profit for 2024 reached 242 million Swiss francs (approximately 1.984 billion RMB), showing a remarkable growth of 204% [7]

Group 1 - James Anderson updated his ownership in MyndTec Inc., indicating an increase in his holdings following a private placement [1][5] - On April 24, 2025, MyndTec Inc. completed the first tranche of a private placement, issuing 692,736 units at a price of $0.20 per unit, each unit consisting of one common share and one-half warrant [2] - The investor acquired 692,736 units in this tranche, raising his total ownership to 7,995,159 common shares and 3,496,849 warrants, which represents approximately 30.48% of the outstanding common shares on a partially diluted basis [3][4] Group 2 - Prior to the first tranche, the investor owned 7,302,423 common shares and 3,150,481 warrants, representing about 28.60% of the outstanding common shares on a partially diluted basis [3] - The transaction was conducted for investment purposes and not intended to exert control over MyndTec Inc., with the investor indicating potential future acquisitions or disposals of shares or warrants [5]

Investors with an interest in Retail - Apparel and Shoes stocks have likely encountered both Gap (GAP) and On Holding (ONON) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revi ...

Group 1 - The article emphasizes the importance of identifying "divergent stocks," which are disruptive companies with strong fundamentals and long growth potential but currently undervalued prices [1] - The investment strategy focuses on long-term growth and seeks innovative companies that contribute positively to society [1] Group 2 - The author has a beneficial long position in ONON shares, indicating a personal investment interest in the company [1]