On Holding's Kylian Mbappé bet 'a direct challenge to Nike and Adidas': Analyst
Brooke DiPalma · Senior Reporter
Fri, September 18, 2026 at 10:32 PM GMT+3 4 min read
On Holding's (ONON) entry into the soccer category through a partnership with World Cup champion Kylian Mbappé marks the latest step for the company as it aims to tread its own path as a premium global sports brand.
The Swiss sportswear company signed Mbappé, whose contract with Nike (NKE) expired this past summer after seven years, beating out competitors such as Adidas (ADS.DE) and Under Armor (UA) for a partnership with the soccer superstar.
The company did not disclose the size of the deal. As part of the announcement, soccer pundit Thierry Henry was named the company's director of football, after working with the brand since 2025.
"The announcement is a direct challenge to Nike and Adidas (which have a near-monopoly in the category)," Evercore ISI analyst Michael Binetti wrote in a note to clients. "We expect a major investment in a large global category will be a positive near-term catalyst for the stock."
On stock rose slightly after the deal was announced, but shares remain down 40% year to date amid a challenging retail environment for sneaker stocks. Nike's stock fell 2% on Friday.
This is not the first time the brand has tapped a former Nike spokesperson. Tennis player Roger Federer ended a 24-year partnership with Nike in 2018. The following year, he took a 3% stake in On, which paid dividends for the tennis pro. Federer even developed his own shoe line, THE ROGER.
The company now has roughly 300 partnerships, including with tennis star Iga Swiatek and two-time Boston Marathon champ and two-time New York City Marathon champ Hellen Obiri.
Other athletes include runner Yared Nuguse and tennis player Ben Shelton. This past June, the company hosted its inaugural On Running Summit in Paris, bringing together its top 100 global run-specialty partners. There, it gave the runners an exclusive look at its new racing shoe, Cloudboom Strike 2.
A partnership with Zendaya has also helped the brand attract a younger demographic. David Allemann, On founder and co-CEO, told Yahoo Finance that a new line co-created with Zendaya that launched in April 2026 sold out, with 60% of customers being women under 34 years old.
On prides itself on including its athletes in its product development, seeking their input to create products that meet athletes' demands. That has been a key strategy for the brand, especially as it expands into new verticals such as training, apparel, tennis, and now soccer.
"On's tennis players Flavio Cobolli and Joao Fonseca captured headlines at Roland Garros and helped drive a nearly 300% increase in tennis apparel," Telsey Advisory Group analyst Cristina Fernández wrote in a note to clients following the second quarter results.
The expansion into soccer was announced ahead of On's Investor Day next week in Zurich, Switzerland, and it could help make On a bigger competitor in the sports apparel space, Binetti wrote.
Citi analyst Paul Lejuez told clients it may be "a sign that NKE may be losing some of its attraction of major sport stars." Others on Wall Street argue that it may be difficult to persuade other players to switch.
On has taken market share in recent years, but its market valuation is dwarfed by giants like Nike. On's market cap is $9.13 billion, compared with Nike's $53.94 billion, according to AlphaSpace data.
Both companies have been under pressure this year. Nike's stock has fallen 43%, matching the decline in On's share price this year, while shares of another competitor in the space, Lululemon (LULU), have dropped over 50%.
On has been struggling against a more cautious consumer environment and promotional retail backdrop, which led to a slowdown in its running segment in North America after demand in the category surged during COVID. The brand has become known for its innovation and premium price points, with sneakers that start at $160 and retail for over $290.
On stuck by its premium sales model instead of leaning into sales, leading the company to miss second quarter revenue expectations and cut its full-year outlook.
Jefferies analysts argue that this partnership is "an attempt to open another growth avenue as the running category in the US market slows."
It could mark the start of the company's next chapter.
"We believe this announcement marks a milestone for ONON as it now expands its ~$105bn global running TAM (shoes and apparel) to now include the ~$30bn global football market, and gives ON an opportunity to expand its brand image outside of running and lifestyle," Lejuez wrote.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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