On Holding stock rose after the Swiss sportswear company signed Kylian Mbappé and formally announced its entry into soccer. The shares gained as much as about 5% in early trading because the partnership gives On instant global credibility in the world’s largest sport and creates a new route beyond running and tennis. The direct answer for investors is that Mbappé can accelerate brand awareness, but the deal becomes financially meaningful only if On turns attention into successful cleats, apparel and distribution without weakening its premium margins.
Why did On Holding stock rise?
Mbappé is one of the most visible athletes in the world, and his move ends a roughly 20-year relationship with Nike. On plans to work with him on product testing and development as it prepares to launch its first soccer boots in 2027. The company also named Thierry Henry as Director of Football after he had worked behind the scenes on the category since late 2025.
The announcement compresses years of brand-building into a single event. A new entrant normally has to prove that its footwear belongs on elite players before consumers take the category seriously. Mbappé supplies that proof signal immediately. The market reaction reflects the size of the opportunity and the symbolic win over an established rival, not a disclosed forecast for near-term sales.
Key takeaways for ONON investors
On is entering soccer with Kylian Mbappé as its marquee partner and Thierry Henry as Director of Football.
The company expects to launch its first soccer boots in 2027, so the immediate financial contribution should be limited.
The deal broadens On beyond running and tennis into a category with enormous global participation and audience reach.
On’s Q2 net sales rose 21.6% in constant currency to CHF 850.3 million, while gross margin reached 65.4%.
No contract economics were disclosed, leaving investors to weigh marketing cost, product execution and the pace of distribution expansion.
Why soccer is a logical next category for On
On built its brand in performance running, then extended into tennis and lifestyle products. Soccer offers a larger global audience and several revenue pools: cleats, training shoes, match and practice apparel, fan-oriented sportswear and collaborations. It also creates year-round storytelling across clubs, national teams and major tournaments rather than relying only on running seasons and product launches.
The company’s technology-led positioning can transfer. On says Mbappé will work with its engineering teams in Zurich as they develop a boot built for speed, comfort and feel. Its LightSpray manufacturing process already creates lightweight uppers through robotic application. Whether that technology provides a true soccer-performance advantage is still unproven, but the company has a credible innovation narrative rather than entering only with a logo and endorsement.
Mbappé changes awareness faster than he changes revenue
An elite athlete can make a product culturally relevant before it reaches scale. Mbappé brings global reach, a younger audience and visibility at Real Madrid and for France. That can help On attract retailers, recruit additional players and establish credibility with consumers who still view the company primarily as a running-shoe brand.
Awareness is only the first step. Soccer footwear is technically demanding and intensely personal. Players care about fit, traction, touch, weight and durability, while professionals often wear customized versions. On must build products that perform across playing surfaces and price points, then produce them consistently at scale. A celebrity partnership cannot rescue an uncomfortable boot or an unreliable supply chain.
The financial base can fund the expansion
On entered the new category from a position of growth and profitability. Q2 sales increased 13.5% as reported and 21.6% in constant currency to CHF 850.3 million. Direct-to-consumer sales rose 26% as reported, lifting DTC to 45.7% of quarterly revenue. Gross margin expanded to 65.4%, and adjusted EBITDA increased 23.5% to CHF 168.1 million.
Those metrics matter because a soccer launch requires years of product development, athlete contracts, marketing and retail support before it reaches meaningful scale. A high gross margin and growing direct channel give On room to invest while preserving control over presentation and pricing. The company also ended June with more than CHF 1.2 billion in cash, providing capacity to fund the buildout without depending on immediate category profits.
The risk is that expansion spending rises faster than demand. On’s Americas sales grew only 4.5% as reported in Q2, and the company has prioritized full-price discipline over chasing wholesale volume. Soccer could strengthen growth, but entering a global team sport may require broader distribution and more promotion than the current premium model typically uses.
How On can challenge Nike and Adidas
Nike and Adidas possess deep athlete rosters, federation relationships, club sponsorships and decades of footwear expertise. On does not need to match that infrastructure immediately. It can start with a narrower premium wedge: speed-focused boots, selected elite athletes, influential academies and direct-to-consumer launches that create scarcity and high engagement.
This is similar to how challenger brands often enter mature categories. They target a small group of demanding users, build credibility through performance and design, then widen the assortment. Mbappé can pull consumers toward the first product, while Henry can help shape the sport strategy and recruit talent. Success would be visible in repeat purchases, additional athlete adoption and a path from limited launches to reliable wholesale demand.
The biggest risks to the ONON thesis
Product risk: the first cleats may not meet elite or everyday players’ expectations for fit, traction and durability.
Cost risk: athlete compensation, development and marketing could dilute margins before revenue scales.
Execution risk: a 2027 launch leaves little room for delays in testing, manufacturing or retail preparation.
Brand risk: a weak soccer launch could distract from On’s premium leadership in running and tennis.
Competition risk: Nike, Adidas and Puma can respond with contracts, innovation and shelf-space pressure.
Valuation risk: investor enthusiasm may price in a large soccer business before products reach consumers.
What could change the ONON investment thesis?
The bullish thesis strengthens if On reveals a credible 2027 product roadmap, signs more elite players and clubs, and gains retail commitments without resorting to heavy discounting. Evidence that soccer draws new customers into apparel and direct channels would make the category more valuable than boot sales alone. Sustained gross margins near current levels while marketing rises would show the company can fund expansion efficiently.
The bearish thesis gains weight if the launch slips, early reviews are weak or contract costs materially depress earnings. Investors should also watch the Americas, where reported growth has lagged other regions, and inventory, which rose during the first half. If On has to broaden discounts or wholesale exposure to support soccer, the initiative could erode the scarcity and pricing discipline that underpin the brand.
The bottom line
On’s Mbappé partnership is strategically important because it moves the company into soccer with instant cultural relevance and a credible product-development partner. It expands the long-term addressable market, but it does not guarantee profitable sales. ONON investors should judge the deal by 2027 product quality, athlete adoption, full-price sell-through, category margins and the strength of the direct customer relationship rather than the size of today’s headline.
