10 Best Sporting Goods Stocks To Invest In Now

6. On Holding AG (NYSE:ONON)

Number of Hedge Fund Holders: 35

On Holding AG (NYSE:ONON) is a Swiss company that develops and distributes footwear, apparel, and accessories for athletes and sports enthusiasts. Founded in 2010, the company sells its products through online stores, physical stores, and distributors. On Holding AG (NYSE:ONON)  ranks highly among our list of the best sporting goods stocks to invest in now.

On Holding AG (NYSE:ONON) recently reported impressive third-quarter results, with net sales rising 33% year-over-year to CHF 636 million. This strong performance was driven by high demand across the direct-to-consumer segment and growing brand awareness globally. Moreover, the company’s gross profit margin reached 60.6% in the same quarter, showing a disciplined approach toward cost management. As a result, On Holding AG (NYSE:ONON) has increased its full-year 2024 net sales growth forecast from 30% to 32%, projecting net sales of at least CHF 2.29 billion.

The company has taken a series of strategic initiatives, including the launch of new products such as Could Surfer 2 and Cloud 6, the expansion of its store network by opening 20-25 stores, and continued investment in marketing campaigns. These recent developments allow the company to sustain its strong brand awareness and sales growth trajectory.

Here’s what Artisan Partners said about On Holding AG (NYSE:ONON) in its Q1 2024 investor letter:

“We initiated new GardenSM positions in On Holding AG (NYSE:ONON) during the quarter. On is an emerging global athletic sports brand focusing on performance footwear. Performance running footwear is one of the most challenging categories to break into, requiring a high degree of technical knowledge, significant investment spending and marketing prowess, each of which On has acheived over the years. The company’s foundation in performance footwear provides a high barrier to entry and a strong and credible foundation for the brand to continue growing. We believe On will generate attractive growth as it scales across product categories, channels and geographies within the $300 billion global sportswear market.”