ON Shoes For Kylian Mbappe and Roger Federer —"A shoe is just a shoe, till somebody steps into it. Then it has meaning." ONON is a bargain, buy the stock.
On Holding AG's focus on performance technology, innovation, and design differentiation are key competitive advantages.
ONON's strategic partnership with the high-profile Soccer superstar Kylian Mbappé will drive growth in an entirely new segment.
The company's positioning as the premium brand in the global athletic footwear segment is a brilliant strategy and has led to over 55% revenue growth in the past 6 years.
With over 60% gross margins because of premium pricing, it can easily continue to spend on high-profile athletes and grow across other sports categories.
At just 19.5x earnings and 2.7x sales, the stock is a bargain.
Footwear is a fragmented market, and market leader Nike's mistakes and decline have helped ONON and Deckers. Having the 800 gorilla lose its prominence and ubiquity will continue to help niche players take wallet share by branching out into other sports and category extensions, the way ONON is doing. It needs to replicate and extend the same quality moat, which I believe it will.
Here is the full article at Seeking Alpha
