On Holding shares are down about 23% this year after second-quarter sales missed Wall Street estimates, and the stock suffered its largest one-day drop in the company's history. The company says the slowdown is intentional, as it is limiting wholesale shipments to promote full-price sales and make room for new products. In its latest quarter, direct-to-consumer sales rose 34.3%, gross margin widened to 65.4% and apparel net sales grew 56.2%, while management expects constant-currency sales growth in the low-20% range for 2026. The stock trades at about 21 times trailing earnings, below the analysts' consensus price target of $43.55, and the company recently authorized a $1 billion share buyback. The author says there is nothing inherently wrong with On Holding and that investors should be patient as growth may slow while the company works through its slowdown.
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NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/22/2026 | 212.28 |
| Change that session | -4.36% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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