Core Thesis - On Holding AG (ONON) is positioned as a compelling long-term investment opportunity due to its strong growth potential, innovative technology, and disciplined capital allocation strategy [1][5]. Company Overview - On Holding AG is a Swiss premium sportswear company founded in 2010, known for its proprietary CloudTec® cushioning technology that enhances running performance [2]. - The company operates in over 80 countries, utilizing both direct-to-consumer and wholesale channels, with flagship stores in major cities like Zurich, New York, Tokyo, and Palo Alto [2]. Financial Performance - In Q3 2025, On reported net sales of CHF 794.4 million, reflecting a year-over-year increase of 24.9%, driven by strong demand across various regions, particularly in Asia-Pacific, which saw over 90% growth [3]. - The company maintains high gross margins of 65.7%, indicating strong profitability [3]. Strategic Positioning - On Holding AG has a narrow economic moat due to its proprietary technology, premium brand positioning, and deepening direct-to-consumer engagement, which enhances customer loyalty [3]. - The management, led by CEO/CFO Martin Hoffmann, focuses on disciplined capital allocation, investing in innovation, brand marketing, and DTC infrastructure while maintaining limited debt and holding CHF 961.8 million in cash [4]. Market Competitiveness - On's global expansion and strong operational efficiency position it favorably against larger competitors such as Nike, Adidas, HOKA, and Lululemon [4]. - The stock trades near its fair value with a PEG ratio of 1.18, supported by projected EPS growth of 25–26% over the next five years [5]. Growth Drivers - The company is experiencing rapid growth in its premium apparel and accessories segment, which now contributes around 7% of sales and has increased by 86.9% year-over-year in Q3 2025 [2]. - Expanding geographic penetration and category diversification are key factors contributing to On's growth potential [5].

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Chinese consumer industry**, particularly the global expansion strategies of Chinese consumer companies in response to slowing domestic growth and competitive strengths [1][6] - The expansion strategy is evolving from cost and supply chain advantages to a focus on **innovation and brand power** [1][6] Current Globalization Stage - Chinese consumer companies are at different stages of globalization, with sectors like **home appliances, auto, and consumer electronics** being pioneers, while others like **restaurants, jewelry, and cosmetics** are still in early stages [8][9] - The report identifies **seven successful stocks** in the coverage: Midea, Pop Mart, Roborock, Miniso, and potential success stories like Anta and Eastroc [6][8] Path to Success - A **five-dimensional framework** is introduced to evaluate success in global markets: 1. Product strength 2. Competition landscape 3. Channel build-up complexity 4. Branding 5. Policy and regulation risks [6][10] Triggers and Accelerators - **Triggers** for overseas expansion include a mix of 'push' and 'pull' factors, while **accelerators** consist of cross-border e-commerce, social media, outbound direct investment (ODI), and mergers & acquisitions (M&A) [6][10] Margin Trajectory - Margin dilution is common during the early stages of overseas expansion, but long-term margin accretion is achievable with strong pricing power, favorable cost structures, and scale enlargement [6][10] Key Risks - Risks involved in going global are categorized into **external** (geopolitical, legal compliance, competition, cultural) and **internal** (organization/talent, partner relationships, cost management, supply chain/operation) [6][10] Market Positioning - Chinese consumer companies show different positions in developed vs. emerging markets, with a shift towards a **Brand-Premium quadrant** as brands develop core competitiveness [10][17] - Significant international revenues are concentrated in OEM-heavy categories, with **83%** of apparel/footwear OEMs and **56%** of pet care brands expected to derive revenues from overseas by FY25E [17][19] Historical Context - The overseas footprint of Chinese consumer companies has evolved through four phases since the 1980s, with the current focus on localization, brand building, and risk management [9][10] Comparative Analysis - Compared to Japanese consumer companies, Chinese brands have a more concentrated overseas revenue exposure, particularly in OEM-driven categories, while Japanese brands show more diversified success across various sectors [17][21] Future Expectations - The report anticipates a shift in positioning dynamics towards premium branding as Chinese companies enhance their competitiveness through the outlined five dimensions [10][21] Conclusion - The report emphasizes the importance of understanding the evolving landscape of the Chinese consumer industry as companies navigate their global expansion strategies, highlighting both opportunities and risks involved in this transition [1][6][10]

Puma’s Reset Gets Real - Moby THE GIST Puma has ripped off the band-aid. A record loss, another year of expected declines, and a sweeping cleanup plan mark 2025 as the year the sportswear group finally admitted its slide was structural, not cyclical. WHAT HAPPENED Puma reported a net loss of €645.5 million (about $760.4 million) for 2025, swinging sharply from a €281.6 million profit the year before. Sales fell 13% as the company battled weak demand, excess inventory, and the cost of restructuring. It bo ...

The major U.S. index futures are currently pointing to a roughly flat open on Thursday, with stocks likely to show a lack of direction after moving notably higher over the two previous sessions.A mixed reaction to earnings news from Dow components Nvidia (NVDA) and Salesforce (CRM) may lead to choppy trading on Wall Street.Shares of Nvidia are jumping by 1.0 percent in pre-market trading after the AI leader reported better than expected fiscal fourth quarter results and provided upbeat guidance."Despite al ...

BERLIN – German sportswear brand Puma ended a challenging year with a whimper. The brand’s annual sales fell 8.1 percent in currency adjusted terms to 7.29 billion euros, down from 8.39 billion euros in 2024, but slightly better than market consensus. More from WWD Puma ended with a particularly disheartening fourth quarter — sales in the final three months of the year dropped 20.1 percent, currency adjusted, to 1.56 billion euros. “2025 was a reset year for us,” chief executive officer Arthur Hoeld said ...

Core Insights - The rapid adoption of artificial intelligence (AI) is leading to significant job losses in various industries, with Goldman Sachs estimating that AI was responsible for 5,000 to 10,000 monthly net job losses in the most affected U.S. sectors last year [1] - AI accounted for 7% of total planned layoffs in January, indicating a growing trend of companies restructuring their workforce in response to automation [1] Company Layoffs Linked to AI - AGORA plans to lay off up to 166 employees, or 6.56% of its workforce, to improve its digital business [2] - ALLIANZ intends to cut up to 1,800 jobs in its travel insurance division due to AI replacing manual processes [3] - AMAZON confirmed 16,000 corporate job cuts as part of an AI and efficiency-driven overhaul [3] - AUTODESK will reduce about 1,000 jobs, approximately 7% of its global workforce, to focus on cloud and AI initiatives [4] - BRITISH AMERICAN TOBACCO announced an AI-driven productivity program that will lead to unspecified job cuts [4] - DOW plans to cut about 4,500 jobs, which is 13% of its total workforce, by streamlining processes through automation and AI [5] - HP INC expects to cut 4,000 to 6,000 jobs globally by fiscal 2028 as it adopts AI [5] - MERCADOLIBRE laid off 119 employees as part of its AI expansion [6] - META is cutting over 1,000 jobs at its Reality Labs unit and around 600 positions in its Superintelligence Labs to pivot towards AI devices [6] - NIKE is laying off 775 employees to enhance profits and increase automation [7] - PINTEREST plans to cut up to 15% of its workforce to focus on AI roles and strategy [7] - SEB announced a restructuring plan that may impact up to 2,100 jobs worldwide by 2027 due to AI [8] - TELSTRA plans to cut 650 jobs in an AI-driven restructure [9] - WISETECH will reduce about 2,000 jobs, nearly one-third of its global workforce, as it integrates AI into its operations [9]

Group 1: AI Impact on Employment - Goldman Sachs warned that accelerating AI adoption could lead to higher U.S. unemployment this year, with job losses already occurring in sectors most exposed to automation [1] - Goldman economists estimated that AI was responsible for 5,000 to 10,000 monthly net job losses in the most exposed U.S. industries last year, accounting for 7% of total planned layoffs in January [2] Group 2: Company-Specific Layoffs Linked to AI - AGORA announced plans to lay off up to 166 employees, or 6.56% of its workforce, as part of a restructuring to improve its digital business [2] - ALLIANZ plans to cut up to 1,800 jobs in its travel insurance division due to AI replacing manual processes [3] - AMAZON confirmed 16,000 corporate job cuts as it pursues an AI- and efficiency-driven overhaul [3] - AUTODESK will shed about 1,000 jobs, or roughly 7% of its global workforce, redirecting spending to its cloud platform and AI initiatives [4] - BRITISH AMERICAN TOBACCO announced a new AI-driven productivity program expected to lead to job cuts, though specifics on affected workforce were not provided [4] - DOW will slash about 4,500 jobs, 13% of its total workforce, as it streamlines processes using automation and AI [5] - HP INC expects to cut 4,000 to 6,000 jobs globally by fiscal 2028 as it adopts AI [5] - MERCADOLIBRE laid off 119 people in an AI-expansion move [5] - META is cutting over 1,000 jobs at its Reality Labs unit and around 600 positions in its Superintelligence Labs as it pivots from the Metaverse to AI devices [6] - NIKE is laying off 775 employees to boost profits and accelerate automation [7]

Retail and Consumer - Best Buy, Ralph Lauren, and Nike are expected to benefit from the new 15% tariff, which is 4% lower than previous rates, according to Jefferies analysts [1] - Other retailers like Target and Elf Beauty may also see positive impacts from the tariff reduction [1] E-Commerce Companies - Small and midcap e-commerce stocks may experience mixed effects; Etsy is noted to be the most insulated from tariff volatility due to its diversified trade routes [1] - Chewy and Wayfair are expected to be least impacted as they have already adapted to previous tariffs [1] Paper, Lumber, and Packaging - Local packaging and lumber companies may lose their competitive edge due to the new tariffs, with companies like Clearwater Paper and Rayonier flagged for negative impacts [1] - A survey indicated that U.S. buyers reported lower containerboard prices in February, intensifying pricing pressure from increased European imports [1] Automobiles - Legacy automakers such as Ford and General Motors are unlikely to see relief from tariffs, as most tariffs on the industry remain unaffected by the recent ruling [1] Steel, Aluminum, and Copper - Producers in these sectors, including Steel Dynamics and Alcoa, are expected to remain unaffected as tariffs will continue under Section 232 [1] Emerging Markets - China is anticipated to benefit significantly from the tariff changes, with analysts expecting tariff rates to decline from 32% to around 24% and 27% [1] - Other regions like India and Southeast Asia are also expected to see tariff reductions, with estimates of 4-5% for Southeast Asia and a drop to 14% for India [1]

Group 1 - On Holding AG (NYSE:ONON) is currently considered one of the best foreign stocks to buy, with Bernstein SocGen Group reaffirming its Outperform rating and maintaining a price target of $70, despite a 15% drop in stock price in 2025 [1][3] - Bernstein describes On Holding as the most compelling long-term compounder in the global sportswear market, indicating strong potential for double-digit sales and profit growth due to a solid expansion plan [3] - Stifel analyst Jim Duffy also reiterated a Buy rating on On Holding, maintaining a price target of $60, influenced by the announcement of a new Chief Financial Officer [4] Group 2 - The new CFO, Frank Sluis, will begin his role on May 1, 2026, following a search that started in April 2025 to separate the combined CEO/CFO position previously held by Martin Hoffmann [5] - Sluis has a background in managing scaled global consumer businesses, particularly at Ahold Delhaize, which aligns with On Holding's market opportunities [5] - On Holding AG is a Swiss company known for designing and manufacturing premium athletic footwear, apparel, and accessories, particularly recognized for its patented CloudTec cushioning technology [6]

Welcome to our Bloomberg audiences worldwide Romaine Bostick here in Milan, Italy, with Elliot Hill, the CEO of nike. Great to have you here, Eliot. It's great to be here.Thanks so much for having me in this great city. Well, thanks for inviting me. You didn't just invite me here to Italy.You invited me to actually oversee what has become a big relaunch here of your ACG brand here at the Milano Cortina Winter Games. Yes. Yeah, it's been.It's part of a clearly, we led with some innovation in apparel on our a ...