ONON's EMEA Momentum Builds as UK and France Drive Demand

On Holding AG’s ONON latest quarter reflects strengthening momentum in Europe, the Middle East and Africa (“EMEA”), with demand increasingly shaped by the United Kingdom and France. Net sales in EMEA rose to CHF 213.3 million in the third quarter of 2025, up 28.6% year over year on a reported basis. On a constant-currency basis, growth was even stronger at 33%, pointing to solid underlying demand across the region despite currency headwinds.

The United Kingdom has firmly established itself as one of On Holding’s largest global markets. Management noted that continued strength in the United Kingdom, particularly in the direct-to-consumer channel, was a key reason for EMEA's acceleration during the quarter. Beyond the United Kingdom, France saw a notable uplift in brand awareness and consumer interest, alongside Germany and Italy. The brand is successfully leveraging its performance credibility to capture a larger share of the premium sportswear market in these key European hubs. 

The company's strategy of establishing physical brand hubs has further solidified its European presence. A new store in Zurich opened during the quarter, joining a global network that showcases the brand's innovation and design. Management also cited strong contributions from the Champs-Élysées location in Paris, reinforcing that its premium retail strategy is gaining traction in core European cities.

What the Latest Metrics Say About ON Holding

ON Holding, which competes with Deckers Outdoor Corporation DECK and Wolverine World Wide, Inc. WWW, has seen its shares gain 7.7% in the past month compared with the industry’s rise of 8.7%. Shares of Deckers and Wolverine have jumped 15.8% and 8.9%, respectively, in the aforementioned period.
 

From a valuation standpoint, ON Holding trades at a forward price-to-earnings (P/E) ratio of 27.22, higher than the industry’s 18.06. ONON carries a Value Score of F. ON Holding is trading at a premium to Deckers (with a forward 12-month P/E ratio of 15.07) and Wolverine World Wide (13.06). 
 

The Zacks Consensus Estimate for ON Holding’s current financial-year sales implies year-over-year growth of 41.2%, while the same for earnings per share suggests a decline of 13.6%.
 

ON Holding currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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