ONON’s Profit Potential Just Kicked into High Gear

This Double-Your-Money Opportunity Is Just Getting Started

Congratulations. LikeFolio All-Star On Holding (ONON) has done it again.

The Swiss running shoemaker came out this morning with a record quarter for revenue, which surged by 29% year over year to $653 million – not only beating estimates, but also marking the first acceleration in growth rate in six quarters.

Shares are now up 57% year to date…

Those of you who’ve been following Derby City Daily from the start – when Megan named ONON a favorite pick – have seen this once-little-known stock race more than 90% higher.

LikeFolio Investor subscribers who acted on our January 2023 trade alert are up an even better 104%, outpacing our initial double-your-money prediction with room to run.

It pays to have LikeFolio in your corner.

And I haven’t even gotten to the best part.

We think this name is just getting started. I’ll show you why today…

Plenty of Market Share up for Grabs

On aims to be “the most premium global sportswear brand” with a focus on running.

The brand is gaining market share with everyday runners, thanks in part to its performance on the track. For example, Hellen Obiri won the Boston Marathon running in On from head to toe.

It’s tapping into local running clubs to help spur adoption – and still has plenty of room for market share capture.

As it stands, On accounts for ~10% market share in major cities including Tokyo, Berlin, Boston, and Nashville. This company is still chipping away at the tip of the iceberg when it comes to brand adoption.

To give perspective, ONON pulls in roughly $2 billion in annual revenue. Compare that to the behemoth Nike (NKE), which pulls in more than $50 billion. That’s significant room for growth in ONON’s favor.

Brand Adoption Is Speeding up

LikeFolio data suggests On’s brand awareness is rising at a blistering pace.

When we look at web visits, a metric that’s indicative of consumer demand, On’s chart is up and to the right. On web visits reached all-time highs in July, besting the growth rate of more established names like Hoka (DECK), Nike, and Brooks.

On also boasts an extremely high level of Consumer Happiness. Customers love the comfort of On shoes and like how they look, too.

At 80% positive, a full 10 points ahead of sneaker giant Nike, ONON’s positive sentiment puts it in the upper echelon of companies in the LikeFolio universe.

Innovations for the Win

ONON isn’t resting on its laurels – it’s at the very forefront of athletic shoe innovation.

Olympic viewers may have caught a glimpse of ONON’s most recent technology if they watched the women’s marathon race.

Bronze medalist (Hellen Obiri) was sporting a pair of CloudBoom LS. “LS” stands for LightSpray, which is a unique top half of a running shoe, formed by spraying a polymer directly on to the midsole unit of the shoe to reduce weight and create a second skin-like fit.

That’s right – On is making spray-on shoes a reality.

Innovation like this is promising to see. It proves ONON is approaching footwear differently, with hyper-personalized shoe engineering and even robotics.

You can’t get this “out of a box.”

Always Room for Improvement

ONON faced a very high bar going into today’s earnings report. And with earnings of 16 cents per share falling short of the expected 19 cents, the reaction on Wall Street was mixed.

But we see substantial potential for improvement. The company is actively investing in warehouse automation in the U.S., a move aimed at enhancing scalability and efficiency to meet rising demand while also working to improve margins.

Bottom line: Long term, it’s clear that ONON is picking up steam. Accelerating sales in new markets, high levels of Consumer Happiness, and surging brand awareness have us more bullish than ever on this LikeFolio All-Star.

Do YOU Own ONON? We Want to Hear from You!

Do you own ONON shares? Have you followed any of our ONON recommendations, whether you saw our coverage here in Derby City Daily or followed a trade recommendation in LikeFolio Investor?

Then do me a favor – open up an email to [email protected] and tell me how much has ONON made you so far? It can be gain %, dollar amount, or whatever you feel comfortable sharing. I’d love to hear about it.

Being able to share in your wins is why we do what we do. It’s the single best part of this experience. So, please give us a shout at [email protected].

We’ll keep bringing you more under-the-radar opportunities like ONON.

Until next time,