{
  "id": 16178125,
  "title": "What's Wrong With On Holding Stock?",
  "url": "https://urgent.news/2026/10/23/whats-wrong-with-on-holding-stock",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-23T11:15:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/23/whats-wrong-with-on-holding-stock/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "On Holding (ONON -0.64%) has been experiencing a decline in its stock price this year, with a notable drop of about 23%. This downturn appears to be the result of a deliberate slowdown implemented by the company. In August, shares plummeted after sales for the second quarter fell short of Wall Street's expectations. The largest one-day drop in On's history was triggered by a slowdown in wholesale sales, which tested investors' patience. However, this intentional slowdown is actually a strategic move by On to promote full-price sales and make space for new products in the upcoming year.\n\nDespite this temporary setback, On's financial fundamentals remain robust. Its direct-to-consumer sales have grown by 34.3% in the latest quarterly report, while the gross margin has expanded to 65.4% compared to the previous year. Net sales in apparel have increased by 56.2%. Management anticipates constant-currency sales to grow in the low-20% range in 2026, a modest revision from previous guidance but still a promising outlook as the company ventures into new sports like football and golf. The company aims to achieve $7 billion in sales with this expansion, a challenging yet attainable objective.\n\nAdditionally, On has authorized a $1 billion share buyback, indicating confidence in its own future. Currently, the stock is trading at approximately 21 times trailing earnings, and it boasts a price-to-earnings growth ratio of just 0.49, suggesting that the stock is fairly valued and may be trading below the consensus price target of $43.55 set by analysts. While the company may experience a slight slowdown in growth, its strong financial footing suggests that On Holding is well-positioned for long-term success. Investors are advised to remain patient as the company navigates through this temporary slowdown and moves forward into 2027.",
  "summary": "The Swiss athletic shoe and sportswear company's stock has fallen more than 20% in 2026.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}