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]

Core Insights - The ICR conference will take place from January 12 to 14 in Orlando, Florida, and is considered one of the most important annual events for the retail industry due to the release of significant holiday sales data and performance guidance from over 250 public and private growth companies [1] - Historically, the U.S. retail sector tends to outperform the market during the ICR conference [1] - Key topics at the conference will include shareholder activism, mergers and acquisitions, the impact of artificial intelligence on consumers and the retail industry, sports-related investment themes, and IPO preparations [1] Company Highlights - Five Below is a value retailer targeting teenagers and young adults [2] - On Running is a premium sports brand focused on technology, design, and influence [2] - Planet Fitness operates as a franchisor and operator of fitness centers in the U.S. [2] - Abercrombie & Fitch is involved in the retail of clothing, personal care products, and accessories [2] - SharkNinja is a product design and technology company with categories including cleaning, cooking, food preparation, home environment, and beauty products [2] - Notable companies such as Walmart, Nike, and Lululemon will also participate in the ICR conference for important presentations and discussions [2] Market Expectations - Analysts are particularly focused on five companies: Five Below, On Running, Planet Fitness, Abercrombie & Fitch, and SharkNinja, which are expected to see stock price increases if they release positive signals regarding their fourth-quarter performance at the conference [1]

Core Insights - On, a Swiss performance sportswear brand, will participate in the 2026 ICR Conference with CEO and CFO Martin Hoffmann scheduled for a fireside chat on January 12, 2026 [1] - A live webcast of the fireside chat will be available on the Company's investor relations website, and a replay will be accessible afterward [2] Company Overview - On was founded in 2010 in the Swiss Alps with a mission to ignite the human spirit through movement, which continues to guide the brand [3] - Sixteen years post-launch, On offers innovative premium footwear, apparel, and accessories for various activities including high-performance running and outdoor training [3] - The brand's CloudTec® and LightSpray™ innovations, along with its commitment to purposeful design and the circular economy, have garnered a rapidly growing global fan base [3] - On operates in over 80 countries and maintains a digital community through its website [4]

Group 1 - The ability to raise prices without losing customers indicates a strong business model [1] - A company that hesitates to increase prices by 10 percent may face challenges in its market position [1]

Core Insights - The ability to raise prices without losing customers indicates a strong business model [1] Group 1 - Companies that can increase prices by 10 percent without significant customer loss demonstrate robust market power [1]

Core Viewpoint - UBS maintains a "Buy" rating on On Running (ONON.US) with a target price of $85, citing the company's focus on innovation, performance, athlete engagement, direct sales model, and maintaining a premium brand image as key drivers for leading sales and profit growth in the industry [1] Group 1: Financial Projections - UBS forecasts that On Running's sales, adjusted EBITDA, and earnings per share will achieve compound annual growth rates of 20%, 24%, and 20% respectively over the next five years [1] - The strong growth momentum is expected to position On Running as one of the fastest-growing athletic apparel brands globally [1] Group 2: Brand Recognition and Market Potential - The UBS Evidence Lab's 11th annual global sports apparel survey indicates that On Running has significant growth potential, with brand awareness currently at 15%, which is substantially lower than competitors like Nike (91%), Under Armour (53%), and Lululemon (36%) [1] - Brand awareness for On Running increased from 13% last year to 15% this year, suggesting a positive trend that could lead to increased market share by 2026 [1] Group 3: Consumer Intent and Recommendations - On Running's global purchase intent for athletic shoes grew by 34% year-over-year, while purchase intent for athletic apparel surged by 122% [2] - The company's global net promoter score rose from 25% last year to 39% this year, ranking sixth globally, indicating a strong ability to convert brand awareness into actual customers [2] Group 4: Brand Recognition Success Factors - Four key areas where On Running has succeeded in becoming a top global athletic apparel brand include: 1. Recognition of high-quality products increased from 31% to 47% among global consumers [2] 2. Brand recognition as a well-known brand rose from 31% to 40% [2] 3. Recognition of On Running as a suitable athletic brand increased from 42% to 46% [2] 4. Perception of On Running as an innovative brand remains strong at 44%, despite a slight decline [2] Group 5: Opportunities for Improvement - A potential area for growth is the accessibility of On Running products, as only 25% of global consumers find the products easy to locate, down from 27% last year, which is among the lowest scores across brands [3] - This presents an attractive opportunity for On Running to expand its direct sales channel network [3]

Investment Rating - The industry rating is "Buy" [5] Core Insights - In Q3 2025, the overall revenue growth of overseas sports footwear and apparel companies slightly declined compared to Q2 2025, with a mixed performance in gross margins and an increase in most companies' SG&A expenses [5][12] - Brands focusing on niche segments like running and outdoor activities, such as ANTA, ASICS, and Deckers Outdoor, maintained high revenue growth rates, with ANTA growing by 34.5%, ASICS by 20.4%, and Deckers by 8.3% [12][13] - Most overseas sports footwear and apparel companies continued to show positive revenue growth, with notable performances from Skechers [12] - Revenue growth rates varied by region, with North America, Europe, and Greater China showing different trends; Europe had the best performance in Q3 2025 [5][20] - The apparel category showed stronger resilience in sales compared to footwear in Q3 2025 [5][25] Summary by Sections Section 1: Revenue Growth and Margin Performance - In Q3 2025, the revenue growth of overseas sports footwear companies decreased slightly compared to Q2 2025, with most companies experiencing an increase in SG&A expenses [5][12] - The revenue growth rates for major brands in Q3 2025 included Adidas at 8%, Lululemon at 7.1%, and ASICS at 20.4% [13][18] Section 2: Inventory Levels - Most overseas sports footwear companies saw an increase in inventory turnover ratios in Q3 2025, but overall inventory levels remained manageable [5][12] Section 3: Revenue Guidance for Fiscal Year 2025 - Compared to 2024, many companies have lowered their revenue growth guidance for the current fiscal year, although brands like Adidas, ANTA, and Lululemon have raised their full-year guidance for 2025 [5][18] Section 4: Investment Recommendations - Despite the slight decline in revenue growth and rising inventory turnover ratios, the long-term outlook for the sports footwear industry remains positive, driven by upcoming major sporting events and a recovery in order placements [5][18]

Group 1: Market Overview - The S&P 500 has experienced a nearly 18% increase in 2025 and an approximately 80% rise over the past three years, highlighting the attractiveness of investing in this index [1][2] Group 2: Company Highlights - **SoFi Technologies**: A digital bank with a rapid customer acquisition rate, achieving a 38% year-over-year revenue growth in Q3 2025. The stock has risen 79% this year, indicating strong potential for future growth [4][5] - **MercadoLibre**: The leading e-commerce platform in Latin America, with a 49% year-over-year sales increase (currency neutral) in Q3. The company is diversifying its offerings with fintech services, positioning itself for significant growth [7][8] - **On Holding**: A fast-growing activewear brand that competes with major players like Nike and Lululemon. It has high gross margins and a resilient consumer base, suggesting strong expansion potential [9][10] - **Lemonade**: An innovative insurance company leveraging AI and machine learning, with a stock increase of nearly 450% over the past three years. It aims for profitability on an adjusted EBITDA basis by 2026 [13][14] - **Taiwan Semiconductor**: A key player in AI chip manufacturing, benefiting from increased demand as hyperscalers ramp up AI spending. The company is well-positioned for continued growth across various tech applications [15][16]

Core Insights - ON Holding AG (ONON) has demonstrated strong growth in the EMEA region, particularly driven by the United Kingdom and France, with net sales reaching CHF 213.3 million in Q3 2025, marking a 28.6% year-over-year increase on a reported basis and 33% on a constant-currency basis [1][7] Group 1: Market Performance - The United Kingdom has become one of ON Holding's largest markets, with significant strength in the direct-to-consumer channel contributing to EMEA's growth acceleration [2] - France, along with Germany and Italy, has shown increased brand awareness and consumer interest, aiding in capturing a larger share of the premium sportswear market [2] Group 2: Retail Strategy - The company's strategy of establishing physical brand hubs has enhanced its presence in Europe, with a new store opening in Zurich and strong performance from the Champs-Élysées location in Paris [3] Group 3: Financial Metrics - ON Holding's shares have increased by 7.7% over the past month, while the industry average rose by 8.7%, with competitors Deckers and Wolverine seeing gains of 15.8% and 8.9%, respectively [4] - The forward price-to-earnings (P/E) ratio for ON Holding is 27.22, which is higher than the industry average of 18.06, indicating a premium valuation compared to Deckers and Wolverine [5] Group 4: Sales and Earnings Estimates - The Zacks Consensus Estimate for ON Holding's current financial-year sales suggests a year-over-year growth of 41.2%, while earnings per share are expected to decline by 13.6% [8] - Current quarter sales estimates are projected at CHF 894.52 million, with a year-over-year growth estimate of 29.41% [9]

Core Viewpoint - UBS analysts express a significantly optimistic outlook for the global sports apparel sector by 2026, anticipating continued growth in market demand, particularly in key markets such as the US, China, and Europe [1][4]. Investment Strategy - The retail sector is expected to maintain a trend of differentiation, with sports apparel and functional brands benefiting from the global health consumption trend. Brands excelling in quality and functionality are favored, while investors should be cautious of macro pressures and brand execution risks [1][2]. - Specific investment opportunities within the softlines retail sector are concentrated in sports apparel and footwear, particularly for globally recognized brands with strong brand equity, innovation, and omnichannel execution capabilities, such as Nike, Under Armour, Adidas, and On Holding [2][7]. Consumer Sentiment - A UBS survey indicates a strong intent among consumers to purchase sports apparel in the next 12 months, particularly favoring high-quality products and brands with good performance, with Nike and Adidas expected to excel in these areas [1][3]. - The survey shows a 2.9% increase in softlines consumption intent compared to the previous year, with a significant acceleration of 535 basis points month-over-month. This indicates a positive shift in consumer sentiment towards softlines retail stocks [3]. Brand Recognition - Brand loyalty and recognition for sports brands are on the rise, with Nike and Adidas showing high consumer awareness globally, especially in China, where their brand recognition significantly outpaces competitors [4][5]. Key Stocks - UBS highlights specific stocks to watch, including Nike, which remains a leader in the industry with strong brand recognition and consumer loyalty. Adidas continues to perform well globally, particularly in Europe. Under Armour is viewed as a potential growth stock despite facing challenges, while Deckers Outdoor, On Holding, and Amer Sports are also noted as stocks with promising future price trends [7].