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)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.