ONON Stock Forecast & Price Target

On Holding AG is poised for significant growth, projecting approximately 27% constant currency revenue increase in FY25, targeting sales of around CHF 2.94 billion. The company's impressive performance metrics include a year-over-year sales growth of 36% to CHF 607 million, driven predominantly by footwear, which represents 95% of total sales and grew 34%. Additionally, On has successfully captured a larger share of the younger consumer demographic, reporting a notable 6-8 point increase in purchases for its leading franchises, alongside strong gains in apparel and accessories.

The financial outlook for On Holding AG is negatively impacted by macroeconomic trends that may depress consumer demand for its premium athletic products, particularly in a recessionary environment characterized by lower disposable income. Moreover, the company's aggressive investments in selling, general, and administrative expenses may strain profit margins, compounded by a deceleration in footwear market growth that risks limiting market share expansion. Additionally, supply chain disruptions and increased costs related to sports marketing sponsorships could further challenge the company's operational performance and brand value.