ONON shares drop 30% YTD despite strong Q1 sales and raised profit outlook

Shares of ONON have fallen about 30% year-to-date despite strong first-quarter sales growth of nearly 30% in constant currency terms and an increased full-year profit forecast. The company is gaining market share in the mature sportswear sector, outperforming Nike's flat revenue growth. ONON maintains strong gross margins in the mid-60% range, supported by its premium brand positioning and tariff resilience. Its Asia market revenue growth is outpacing that of the U.S. and Europe. With over CHF 1 billion in cash and no debt, ONON has solid financial flexibility and currently trades at a low valuation, supporting a 'Strong Buy' rating from the analyst.