On (ONON)

Why Revenue Could Accelerate

1. 01North American revenue growth rate and market share gains versus Nike, Adidas, Hoka (Deckers) in premium running category
2. 02Direct-to-consumer penetration rate and owned retail store expansion (currently ~200 stores globally, expanding 30-40 stores annually)
3. 03Gross margin trajectory driven by DTC mix shift, product mix (apparel attachment rates), and manufacturing cost management
4. 04International expansion velocity, particularly China market penetration where premium athletic footwear market is growing 15-20% annually
5. 05Product innovation pipeline and successful launches beyond core running category (tennis, hiking, lifestyle crossover products)

ONON Chart

My Notes

• growth - The 29.4% revenue growth, 204% net income growth, and premium valuation (4.1x P/S…
• Rising interest rates create moderate headwinds through two channels: (1) Higher rates reduce consumer discretionary spending power…
• Watch on earnings: US retail sales excluding autos (RSXFS) as proxy for discretionary consumer spending strength, Consumer sentiment index (University of Michigan) indicating willingness to make discretionary purchases at premium price points, USD/CNY exchange rate for China market pricing strategy and manufacturing cost implications.