Core Thesis - On Holding AG (ONON) is positioned as a rapidly growing premium sportswear company with a strong focus on innovation and sustainability, projected to achieve approximately $3.3 billion in revenue by 2025, reflecting a 29% year-over-year growth [2] Company Overview - Founded by Olivier Bernhard, Caspar Coppetti, and David Allemann, On Holding AG specializes in performance and lifestyle footwear, leveraging proprietary technologies like CloudTec® cushioning and Speedboard® propulsion [2] - The company operates under a dual-CEO model, providing operational and strategic balance, with founder control ensuring long-term alignment with shareholders [3] Financial Performance - ONON's trailing and forward P/E ratios are 58.52 and 30.49 respectively, indicating a premium valuation in the market [1] - The company has achieved EBITDA margins near 18% and is expected to generate free cash flow exceeding $140 million in 2025, with a net cash position of over $750 million [5] Business Model and Growth Strategy - On's hybrid business model consists of 59% wholesale and 41% direct-to-consumer (DTC) sales, with a strategic shift towards higher-margin DTC, driving gross margins above 61% [4] - The company invests 7% of revenue in R&D and 12% in marketing, focusing on innovation and community engagement rather than traditional advertising [4] Market Position and Brand Strategy - Partnerships with high-profile athletes like Roger Federer and grassroots initiatives through the On Athletics Club enhance brand authenticity and consumer engagement [5] - The company is experiencing rapid expansion in the Asia-Pacific region, with sales growth of 85% year-over-year, reinforcing its scalability in the premium sportswear market [4]

Core Insights - Financial giants have shown a bearish sentiment towards On Holding, with 68% of traders exhibiting bearish tendencies and only 25% being bullish [1] - The average target price from industry analysts for On Holding is set at $47.0, with a downward revision from Williams Trading [13] Options Activity - A total of 16 unusual trades were identified for On Holding, with 14 puts valued at $547,732 and 2 calls valued at $79,590 [1] - The average open interest for options stands at 8,880.83, with total volume reaching 8,020.00 [3] - Whales have targeted a price range from $37.5 to $60.0 for On Holding over the last 3 months [2] Company Overview - On Holding AG is a premium performance sports brand focused on technology, design, and impact, primarily offering shoes, apparel, and accessories for athletic and leisure use [11] - The company relies on third-party suppliers and contract manufacturers for its products and derives most of its revenue from the Americas, with additional revenue from Europe, the Middle East, Africa, and Asia-Pacific [11] Current Market Position - On Holding's trading volume is at 1,902,669, with its stock price down by 0.72% at $48.56 [14] - RSI indicators suggest that the stock is currently neutral, positioned between overbought and oversold [14] - An earnings announcement is expected in 49 days [14]

Core Insights - On Holding AG has experienced a 29% increase in stock price since May 2024, which is comparable to the S&P 500's gain of 31% [1] Group 1: Company Performance - The performance of On Holding AG aligns closely with the broader market, indicating strong market sentiment towards the brand [1] Group 2: Analyst Perspective - The analysis emphasizes a value-oriented approach to investment, suggesting that valuation is more indicative of long-term opportunities rather than short- to mid-term timing [1]

Core Viewpoint - On Holding AG has experienced a 29% increase since May 2024, which is comparable to the S&P 500's 31% gain, indicating strong performance in the premium sports brand sector [1]. Group 1: Company Performance - On Holding AG's stock performance aligns closely with the broader market, suggesting robust investor confidence and market positioning [1]. Group 2: Analyst Perspective - The analysis emphasizes a value-oriented approach to investment, highlighting that valuation is more indicative of long-term opportunities or risks rather than short- to mid-term timing [1].

Group 1 - The On brand is distinguished by its premium positioning compared to other sportswear brands, which is considered a significant strength or "super power" of the company [1] - The management of the business is influenced by the premium nature of the brand, affecting decision-making processes [2] - As the company scales, there may be a trade-off between maintaining premium positioning and achieving growth, raising questions about whether these objectives are compatible [2]

Core Viewpoint - Saab is set to parallelize production across multiple manufacturing plants for its new A-26 submarines to meet delivery targets for three vessels ordered by Poland [1] Group 1: Company Strategy - The decision to parallelize production aims to enhance efficiency and ensure timely delivery of the submarines [1] - The CEO of Saab emphasized the importance of meeting the delivery schedule to fulfill Poland's defense needs [1] Group 2: Industry Context - The move reflects a broader trend in the defense industry where companies are optimizing production processes to meet increasing demand from various countries [1] - Saab's strategy may influence competitors to adopt similar approaches to remain competitive in the submarine manufacturing sector [1]

Financial Data and Key Metrics Changes - The company has raised its sales targets multiple times and is tracking ahead of its 2026 margin targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with successful franchises like Cloudrunner, Cloudsurfer, and Cloudmonster driving growth [17][18] - The apparel segment, particularly in tennis, is the fastest-growing part of the business, indicating successful expansion into new categories [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with Asia Pacific outgrowing expectations [9] - Brand awareness is between 25%-30%, suggesting significant room for growth as 75% of potential customers are not yet familiar with the brand [25] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on innovation, quality, and sustainability [4][5] - There is a clear strategy to expand the addressable market by tapping into new demographics and sports categories [20][21] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the brand's growth trajectory, with plans already in place for product development through 2028 [34] - The importance of team culture and talent acquisition was highlighted as a key factor in maintaining brand momentum [35] Other Important Information - The company emphasizes the significance of maintaining a premium brand image, avoiding discounting, and focusing on full-price sales [11][12] - Automation in manufacturing is seen as a future necessity, with the introduction of innovative products like Lightspray [32] Q&A Session Summary Question: How does the company manage the balance between growth and margins? - The management stated that high margins should not come at the expense of innovation and investment in the business, emphasizing a balance between growth and maintaining a healthy margin environment [27][28] Question: What are the expectations regarding U.S. tariffs and their impact? - The company has implemented pricing and supply chain efficiencies as mitigation strategies, which are expected to remain even if tariffs are rolled back [31] Question: What is the company's outlook on the running category amidst competition? - The management reaffirmed the commitment to remain a leader in running, with significant innovations planned for existing product lines [17][18]

Financial Data and Key Metrics Changes - The company has raised its sales targets multiple times and is tracking ahead of its 2026 margin targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with significant innovations planned for products like the Cloudmonster and Cloudsurfer, which are expected to enhance market relevance [17][18] - The apparel segment, particularly in tennis, is the fastest-growing part of the business, driven by collaborations that appeal to younger demographics [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with the Asia Pacific region outpacing expectations [9] - Brand awareness is between 25%-30%, indicating a significant opportunity for growth as 75% of potential customers are not yet familiar with the brand [25] Company Strategy and Development Direction - The company aims to maintain its premium positioning while expanding its addressable market through innovation and brand awareness [5][10] - There is a focus on balancing growth and margins, with a commitment to reinvest in product development and marketing to sustain brand momentum [28][29] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the brand's growth trajectory, with guidance to achieve 30% growth over the next three years while maintaining a 23% growth rate next year [34] - The importance of team culture and talent acquisition was highlighted as a key factor in sustaining brand strength and innovation [35] Other Important Information - The company is focused on avoiding discounting practices to maintain its premium brand image, especially during the holiday season [11][12] - Automation in manufacturing is seen as a critical future direction, with the introduction of products like LightSpray aimed at enhancing production efficiency [32] Q&A Session Summary Question: How does the company view the balance of wholesale growth? - The company sees wholesale growth coming from new partners, new doors, and same-store sales, emphasizing the need to start with customer awareness [25] Question: What is the company's approach to managing growth and margins? - The management stated that high margins should not come at the expense of innovation and investment, aiming for a balance that supports growth while maintaining healthy margins [27][28] Question: How does the company plan to address potential tariff impacts? - The company has implemented pricing and supply chain efficiencies as mitigation strategies, which are expected to remain even if tariffs are rolled back [31]

Financial Data and Key Metrics Changes - The company is tracking ahead of its 2026 margin targets and is on track to exceed sales targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with significant innovations planned for the Cloudmonster, Cloudsurfer, and Cloudrunner lines in 2026 [16][18] - The apparel business, particularly in tennis, is the fastest-growing segment, driven by collaborations that appeal to younger demographics [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with Asia Pacific outpacing expectations [9] - Brand awareness is between 25%-30%, indicating significant growth potential as 75% of potential customers are still unaware of the brand [25] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on innovation, quality, and sustainability to expand its addressable market [4][5] - The strategy includes maintaining a premium positioning while expanding into new sports categories, balancing performance and lifestyle [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's growth trajectory, with plans already in place for product development through 2028 [34] - The importance of team culture and talent acquisition was emphasized as a key driver of brand success [35] Other Important Information - The company is focused on full-price sales and avoiding discounting, which aligns with its premium brand strategy [11][12] - There is a strong emphasis on automation in manufacturing to enhance efficiency and reduce reliance on manual labor [32] Q&A Session Summary Question: What has driven the outsized growth of the brand? - Management noted that the brand's DNA and premium positioning have been key to its success, with all initiatives aligning with growth targets [8] Question: How important is the running category to On's business? - The running category is foundational, with aspirations to lead in this space through innovation and product updates [16] Question: What are the characteristics for entering new categories? - The focus is on expanding the addressable market and relevance to a broader customer base, particularly in performance and lifestyle sports [20] Question: How does the company balance growth and margins? - Management aims to steadily increase margins while investing in growth initiatives, emphasizing the need for innovation and product development [27][29] Question: What are the implications of U.S. tariffs on the business? - The company has implemented structural changes to maintain margins and continue investing in growth, regardless of tariff fluctuations [30][31]

Core Insights - ClearBridge Investments reported a strong but volatile performance in US equities for Q4 2025, with the S&P 500 Index returning 2.7% and the Russell Midcap Growth Index declining 3.7% [1] - The ClearBridge Growth Strategy achieved its third consecutive quarter of outperformance through a balanced and highly active share approach, maintaining disciplined portfolio management and opportunistic capital allocation [1] Company Highlights - On Holding AG (NYSE:ONON) is a Swiss athletic company that develops and distributes sports products, with a one-month return of 2.78% and a 52-week loss of 11.30% [2] - As of January 9, 2026, On Holding AG's stock closed at $49.12 per share, with a market capitalization of $16.218 billion [2] - The ClearBridge Growth Strategy noted that On Holding AG contributed positively to consumer performance, benefiting from strong growth in international markets, particularly in China, and accelerating growth in apparel [3] Hedge Fund Activity - On Holding AG was held by 52 hedge fund portfolios at the end of Q3 2025, an increase from 42 in the previous quarter, indicating growing interest among institutional investors [4] - Despite the potential of On Holding AG, some analysts believe that certain AI stocks may offer greater upside potential and carry less downside risk [4] Investment Position - ClearBridge Growth Strategy initiated a position in On Holding AG in the previous quarter, reflecting confidence in the company's growth prospects [5]