The purchase of quality products for any type of sport is essential. Firstly, so that the sport is something that brings health to our body, and secondly because only then we will have the ability to enjoy it and continue doing it over time.
That is why if you have ever searched for sports accessories brands, you have probably come across the name On Holdings, and if not, you will have read about other retail brands that work directly with them.
But On Holdings is also one of the companies that has had the most prominence for some years on the New York Stock Exchange, commonly known as NYSE. In case you do not have products of this company, but you are investors who are looking for new companies whose shares to add to your investment portfolio, you are also interested in gathering information about this.
What exactly is ON holdings, what are its origins or how did it start in the world of sports and sporting goods, is it an interesting company compared to others that are also listed on the stock exchange, today we are going to tell you interesting things that answer all these questions, so keep reading the article if you feel like being informed!
What is ON holdings? Brand history
This company, whose full name is ON holdings AG, is a project that was created in 2012 by David Allemann, Olivier Bernhard and Caspar Coppetti. Its official headquarters is in Zurich, Switzerland, and its specific sector is the sale of products related to different sports. Specifically, the company offers sports footwear and clothing, as well as distributing high-performance sports products.
Its distribution space is worldwide, and although it has a certain fame within the sports products market in the United States, it is perfectly possible to buy it in many other countries and different continents. The key to this is precisely that it sells its products through other retailers that are independent, and with whom it has had collaborative projects for years. But in addition, it also sells its own products through a website, that is, completely online.
If you are one of those who only buy products, especially those that have to do with sport, physically, you have never seen a store specializing in running brand ON holdings. But you may have seen their products in other stores, or online.
Another reason why ON holdings is well known, is because of its obvious success, which has also made it part of the first positions of the investments in the New York Stock Exchange, among others. Especially internationally known are their running shoes, or running shoes, and in fact among their latest statements have made it clear that they had as a project to become the most used running shoes in the world.
Is it then convenient to invest a certain amount of money in On Holdings shares? In order to answer this question, the most important thing is to have some data on how its economy has been going during the last two years.
Technology at On Holdings and its IPO
We have always told you, also in previous articles of our blog, that it is important to study the consumer behavior of users in order to make decisions in the world of finance. The last two years have been a turning point, and online sales, without having to go in person, have skyrocketed.
This is why one of the most successful sales channels for On Holdings products, especially its sneakers, has been through its website, or through other famous online sales platforms, such as Amazon.
Having this online presence has meant that the company’s economy has not stopped growing, and therefore the value of its shares is increasing. Since its IPO, the famous brand, which is also known as On Running, has done nothing but arouse the interest of investors in general, and this is something that does not surprise us at all:
Last year, as we told you, its shares had an increase of 46%, while this year 2022, against all odds, those shares rose another 16% more. We say against all odds because analysts were really surprised when the company gave its results, since due to the generalized situation of economic crisis, their estimates were very different.
What is the current valuation of this Swiss company?
The pessimistic valuations of the experts were due to the fact that in the last quarter of 2021, On Holdings had declared a loss of $10.5 million. However, thanks to the frenetic activity of the last few months, the increase was again around $14 million.
So what is the current financial situation of the Swiss sneaker and sportswear company? Well, in short, and except for very specific circumstances in which it has had some losses, its situation is one of improvement year after year. Its net sales, without taking into account other factors, have increased since its year of inception in the market by 68%, and today the company has a market capitalization of more than $11 billion.
The results are good, and that may lead you to think that perhaps it is one of the companies where it may be more convenient to acquire some shares. At the time of writing this article, the price of an On Running share is $17.48, and if you are reading this from Spain, there is also good news: Europe is the second continent where sales of its products are most successful, which means that its results can be expected to continue to do well.
However, although everything in this guide to the financial situation of this sporting goods company seems to indicate that what you should do is buy shares today, we always talk about the importance of being informed, and today is no different.
The best thing you can do is to look for information in this and other blogs about different outdoor and indoor sports companies or any other topic related to the world of investment in sports projects. This way you will have your own criteria about which is the most convenient place depending on your profile and economic capacity to invest.