On Holding Announces $1 Billion Buyback and Enters Soccer and Golf Markets
On Holding (ONON) saw its stock rise over 9% on Tuesday after announcing a $1 billion share buyback program, revised guidance through 2029 with high teens growth expectations, and plans to expand into soccer and golf markets. The move aims to address concerns about slowing revenue growth following reduced Q2 earnings guidance. The company's expansion into sports like soccer—following last week’s Mbappé signing—and golf is seen as a strategic shift toward higher-margin opportunities. Investors responded positively due to the buyback, which could reduce shares outstanding by 10%, and because On Holding trades at below-market multiples despite recent gains. Analysts view this development favorably for long-term investors, especially given the company's direct-to-consumer strategy that has driven profit margins upward in previous quarters.
Tickers: $ONON