Street View: On Holding's DTC, wholesale growth to help race ahead of peers

On Holding AG

15/05/2024 14:26

** On Holding  ONON.N  raised its annual sales forecast on
Tuesday and beat first-quarter results helped by the sportswear
maker's focus on selling premium-priced products and bringing in
newer items to attract customers
    ** Shares of the Roger Federer-backed company, which on
Tuesday closed up 18.2% at $36.3, were largely flat before the
bell on Wednesday
    
    
    RUNNING AHEAD OF PEERS 
        
  
        ** William Blair ("outperform") says among emerging
athletic brands, On is best positioned to iterate and reinvent
the brand to sustain its momentum 
    ** Telsey Advisory Group ("outperform", PT: $40) says On's
story remains consistent with higher global brand awareness,
driving strong direct-to-consumer (DTC) growth in Q1 and
expansion with wholesale accounts
    ** Barclays ("overweight", PT: $40) says co seeing fastest
growth in U.S. footwear, with increasing penetration among
younger consumers
    ** Truist Securities ("hold", PT: $34) notes strong
wholesale order books for H2 drive incremental confidence in the
H2 outlook
    ** Needham ("buy", PT: $45) likes the fact that On is
thinking about the business more in franchises vs just
stock-keeping units, and expanding the brand's reach by signing
up non-athlete celebrities 

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam))