Swiss brand On Outpaces Nike, Adidas Growth Last Quarter: Retail Investors Turn Bullish

Swiss shoe and sportwear brand On (ONON) is powering through and winning over customers from Nike (NKE) and Adidas, according to their latest earnings and investor comments.

While On's customer base and sales remain smaller, the brand is expanding rapidly in global markets, emerging as a growing challenger to established players that have faced criticism for lagging in product innovation.

According to its earnings report released over the weekend, On's sales in the quarter ended March 31 rose 40% to 726.6 million Swiss francs (about $869 million).

For the same quarter, Adidas' sales grew 12.7% to 6.15 billion euros (about $7 billion), while Nike's top line shrank 9% to $11.27 billion.

In 2024, On's sales rose 30%, thrice as much as Adidas'. Nike's revenue was flat.

To be fair, Nike faces a series of challenges beyond the usual.

The iconic brand behind Air Force 1 and Air Jordans has lost out in recent years due to an ill-fated strategy to pull its products from third-party retailers.    

CEO Elliott Hill, who returned from retirement in October, has committed to fixing Nike's relationship with third-party retailers and focusing on the brand's strengths in basketball and running.

On Stocktwits, the retail sentiment for On climbed to 'bullish' from 'neutral' the previous day.

A user said, "It's pretty clear at this point, after the Deck results, ONON is crushing nearly everyone currently in the shoe world and gaining traction in apparel."

U.S.-listed shares of On are up 6.7% this year.

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