Company Performance - On Holding (ONON) closed at $63.62, with a daily increase of +0.92%, outperforming the S&P 500's gain of 0.53% [1] - The stock has appreciated by 15.1% over the past month, significantly exceeding the Retail-Wholesale sector's growth of 5.57% and the S&P 500's increase of 1.24% [1] Upcoming Financial Results - The company is expected to report an EPS of $0.20, reflecting a substantial increase of 433.33% year-over-year [2] - Revenue is forecasted to reach $666.44 million, indicating a growth of 32.05% compared to the same quarter last year [2] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates suggest a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system indicates that estimate revisions correlate with near-term share price momentum, with ONON currently holding a Zacks Rank of 2 (Buy) [4][5] Valuation Metrics - On Holding has a Forward P/E ratio of 55.73, which is significantly higher than the industry average of 16.07 [6] - The company has a PEG ratio of 0.97, compared to the industry average of 1.56, indicating a more favorable valuation relative to expected earnings growth [6] Industry Context - The Retail - Apparel and Shoes industry is ranked 59 in the Zacks Industry Rank, placing it in the top 24% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the strength of the industry [7]

Group 1: On Holding - On Holding is gaining attention in the elite athleticwear market with its distinctive footwear and premium brand positioning targeting affluent consumers [3][5] - The company has expanded its product line to include activewear, with footwear remaining its core product, and recently introduced innovative LightSpray shoes [4][5] - On Holding reported a 33% year-over-year sales increase in Q3 2024, with direct-to-consumer sales growing by 50%, now accounting for 38.8% of total sales [5] - The company achieved a gross margin of 60.6% in Q3 2023, its highest since going public, and its stock has increased by 108% over the past year [6] Group 2: Toast - Toast operates as a fintech platform serving the restaurant industry, providing a comprehensive cloud-based solution for restaurant management [7][8] - The platform integrates various operational aspects, enhancing efficiency and decision-making through machine learning [8] - In Q3 2024, Toast added 7,000 new locations, a 28% year-over-year increase, and transitioned from a $59 million loss to a positive $35 million operating income [10] - The company holds approximately 13% market share in its category and is expanding through global growth and new features, with its stock up 125% over the past year [11]

Core Viewpoint - On Holding AG (ONON) is experiencing strong growth driven by its multi-channel strategy, particularly through its direct-to-consumer (DTC) channel, enhanced global brand awareness, and operational improvements [1][5]. Growth Drivers - The DTC channel has significantly outperformed the wholesale channel in 2024, with net sales increasing by 27.3% and 30.7% on a constant currency basis in the first nine months of 2024 [5]. - The DTC channel grew by 39% year over year and 43% on a constant currency basis, indicating strong brand momentum [5]. - The company achieved its highest gross profit margin since its IPO, reaching 60.6% in Q3 2024, an increase of 70 basis points year over year, primarily due to DTC growth and a focus on full-price sales [6]. - Strategic partnerships and a strong presence at events like the Paris Olympics have enhanced brand recognition, contributing to market share growth [7]. - New store openings in key locations, including New York City, Austin, Chicago, Milan, and Melbourne, have expanded the company's retail presence [8][9]. Challenges - The sportswear market is highly competitive, with established leaders dominating market share, posing challenges for ONON in gaining significant long-term market share [10]. - The company's marketing expenses increased by 33.6% year over year in the first nine months of 2024, raising concerns about the sustainability of sales growth from heavy marketing investments [11].

Group 1: Market Trends - Consumer discretionary stocks have experienced a surge in recent weeks due to increased risk-on behavior in equity markets [2] - On Holding (NYSE: ONON) has shown continued strength, indicating positive market sentiment towards this relatively new company [2] Group 2: Investment Strategy - The focus is on identifying potential winners early in their growth cycles through a combination of technical and fundamental analysis [3] - The investment strategy emphasizes efficient and profitable capital use, moving away from rigid buy-and-hold approaches [3]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about On Holding (ONON) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.On Holding currently has an average brokerage recommendation ...

After some retail stocks were hit with relatively bearish price action, some investors might be weary of looking into the space for a new potential investment. That might make sense for those looking to avoid unnecessary risks, but keeping that attitude after last week’s rally in the overall market could be a mistake. When it comes to apparel stocks, you have two main options: established legacy brands that are already scaled and well-known—like Nike Inc. NYSE: NKE—and smaller, more agile brands that are ra ...

Financial Data and Key Metrics Changes - The company achieved record net sales of CHF 636 million in Q3, growing by 33% on a constant currency basis [7][30] - Gross profit margin reached 60.6%, and adjusted EBITDA margin was 18.9%, both the highest since going public [32][49] - D2C net sales grew by 49.8%, reaching CHF 246.7 million, accounting for 38.8% of total net sales [32][38] Business Line Data and Key Metrics Changes - Net sales from shoes grew by 32.1% to CHF 603.7 million, driven by strong performance in running franchises like Cloudmonster and Cloudrunner [44] - Apparel sales increased by 33.4% to CHF 26.8 million, with expectations for reacceleration in Q4 [45] - Wholesale channel grew by 23.2%, reaching CHF 389.1 million, reflecting strength in existing and new product franchises [38] Market Data and Key Metrics Changes - APAC region saw net sales of CHF 74.6 million, growing by 79.3% on a constant currency basis, contributing 11.7% to total business [43] - The Americas region grew by 34.1% to CHF 395.5 million, driven by brand strength and operational improvements [41] - EMEA region reached CHF 165.8 million in net sales, growing by 15.1%, with France being the fastest-growing market [43] Company Strategy and Development Direction - The company aims to position itself as a premium global sportswear brand with a focus on sustainable and durable growth [7][20] - Strategic focus areas include apparel, retail expansion, and increasing brand awareness, particularly in APAC [12][20] - Plans to open 20 to 25 new retail stores annually, with significant growth expected in China and Japan [14][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued brand momentum and operational improvements heading into Q4, expecting higher constant currency growth rates [54] - The company anticipates achieving at least CHF 2.29 billion in net sales for the full year 2024, despite expected FX headwinds [55] - Management highlighted the importance of innovation and operational excellence as key drivers for long-term success [24][25] Other Important Information - The company reported a positive cash flow of over CHF 125 million in Q3, with a cash balance of nearly CHF 750 million at the end of the quarter [51] - Significant investments in D2C channels and operational efficiencies have contributed to strong performance [33][47] Q&A Session Summary Question: Increases in brand awareness details - Management noted significant increases in brand awareness, particularly among younger demographics, driven by partnerships with cultural icons and Olympic exposure [60][61] Question: Drivers of 50% B2C growth - Key drivers included successful product launches, increased brand awareness from marketing efforts, and investments in D2C environments [64][66] Question: Inventory and supply chain constraints - Management acknowledged past constraints but indicated improvements in product flow and inventory management, with plans for enhanced warehouse automation [71][73] Question: Wholesale performance moderation - The moderation was attributed to door closures in Europe and inventory constraints, but overall brand demand remains strong [91][92] Question: Multiyear margin outlook - Management confirmed confidence in achieving long-term margin goals, with expectations for continued strong performance in Q4 [96][97]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about On Holding (ONON) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.On Holding currently has an average brok ...

Company Performance - On Holding (ONON) reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.22 per share a year ago, representing an earnings surprise of -29.17% [1] - The company posted revenues of $734.69 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.49%, and up from $543.85 million year-over-year [2] - Over the last four quarters, On Holding has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - On Holding shares have increased approximately 95.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.8% [3] - The current consensus EPS estimate for the coming quarter is $0.21 on revenues of $681.01 million, and for the current fiscal year, it is $0.98 on revenues of $2.65 billion [7] Earnings Outlook - The estimate revisions trend for On Holding is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Industry Context - The Shoes and Retail Apparel industry, to which On Holding belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

On Holding (ONON) closed the most recent trading day at $50.61, moving -0.08% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.26%.Heading into today, shares of the running-shoe and apparel company had lost 0.94% over the past month, lagging the Consumer Discretionary sector's gain of 1.51% and the S&P 500's gain of 2% in that time.Investors will be eagerly watching for t ...