Analyzing the Growth Potential and Market Strategy of On Holding (NYSE: ONON)

Why On looks like a compelling buy

You might have noticed people in your neighborhood wearing On's uniquely designed CloudTec running shoes, which The Wall Street Journal describes as looking like a "mouth in dire need of braces," or you might already be a fan. Swiss-based On has gained a large and loyal following of affluent fans who are willing to pay premium prices for its comfortable footwear. It has also developed a full line of athletic wear at prices similar to or even slightly more expensive than high-end sportswear giant Lululemon Athletica.

Factors Driving On's Success

• Low brand presence
• High growth potential
• Upscale target market
• Robust profitability

The company exceeded expectations in 2023, with sales up 47% year over year, reaching a mid-term target of exceeding 60% gross margin. Management projects a 30% sales increase in 2024 on a currency-neutral basis.

Market Expansion Strategy

• Brand awareness and community growth
• Expansion through a multichannel model
• Innovative product development
• Efficient scaling

One way On is increasing visibility is through celebrity endorsements, opening new stores, and investing in tech and automation for profitability.

Is On stock a bargain?

On stock, with a price-to-sales ratio of 6.4, may not be a traditional bargain but offers significant growth potential for investors looking at long-term high-growth stocks.