1513 ET - On Holding has shed some 30% so far this year, caught in a downdraft with other footwear stocks amid fears of deteriorating demand and sourcing exposure to Vietnam. But the pullback provides a compelling risk-reward setup, given the stock faces below-average earnings risk with strong brand momentum, high margin and pricing power, Baird analysts say in a research note. While they are not assuming an outright recession, the analysts note that even during the Great Financial Crisis, retailers like Under Armour, Deckers and Lululemon posted double-digit revenue growth in full-year 2009. While current demand destruction is difficult to gauge, On Holding could continue posting rapid revenue growth of at least 20% or so, the analysts say. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
April 08, 2025 15:14 ET (19:14 GMT)
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