Street View-On Holding's Americas slowdown expected to continue

On Holding AG

12/08/2026 13:10

** Shares of sportswear brand On 49G.BN, ONON.N slumped as much as 22% on Tuesday after it missed Q2 net sales estimates, hurt by weakness in its biggest market Americas
** The shares rose about 0.8% in premarket trading on Wednesday
** At least 12 brokerages cut On's target price, which has a median PT of $45.5, while at least two downgraded the stock
     
US BUSINESS TO SLOW DOWN FURTHER
     
** Raymond James ("outperform," PT: $38) says ONON is set for slower growth due to recent pressure on the US wholesale channel but continues to see a long runway
** Jefferies ("underperform," PT: $20.00) also believes the U.S. business will slow down through next year and sees negative growth as Americas account for more than half its revenue
** On's choice to prioritize selling at full price rather than providing discounts is a smart choice, says Bruce Winder, an independent retail consultant
** Telsey Advisory Group ("outperform," PT: $43) says, "Once a brand begins to discount a lot, consumers tend to wait for the discount, and it's hard to reverse the trend"
** Jefferies analyst Randal Konik warns gains may not be sustainable as growth moderates and inventory levels remain high 
** Tariffs have impacted ONON over few years, but the brand has been able to offset it, some analysts say
     

(Reporting by Angela Christy M)
((AngelaChristy.M@thomsonreuters.com;))