ONON - Strong brand, affluent customers & low awareness fuels solid growth & leading margins

研报英文原文证据摘录

ONON - Strong brand, affluent customers & low awareness fuels solid growth & leading margins

Truist Securities

Awareness is rapidly expanding behind incremental marketing investments; still a long-run way for growth across regions –

In 1Q, outperformance in EMEA largely drove the topline beat (sales of CHF 207mm beat Street’s CHF 193mmE) while sales were ~in-

line to slightly below Street’s forecasts for both APAC (61% CC growth) and the Americas (17% CC growth). Awareness remains low

but continues to expand across regions (US awareness just surpassed 30% for the first time per mgmt) as ONON continues to invest in

the brand (marketing spend is expected to be 13%-13.5% of sales in FY26 vs 12.5% in FY25). Incremental brand-building investments

(particularly the partnership with Zendaya) are driving an uptick in penetration of younger and more life-style oriented consumers, which

is effectively diversifying ONON’s customer base. In the US, the company also still has ample room to grow in the wholesale channel as

they are only in ~50% of doors with their largest partners (Foot Locker, Dick’s Sporting Goods (DKS, Buy), and JD Sports (JD-GB, NR)).

While maintaining a disciplined/controlled approach to expansion (more on this below), the company sees opps to not only expand into

additional doors but further penetrate existing doors (while adding new categories outside of running).

Apparel growth reaccelerated and remains a key driver of DTC outperformance – 1Q apparel sales of CHF 55mm were up 57.5%

YOY on a CC basis (vs 46% in 4Q, which was pressured by the timing of key launches). In our view, apparel growth (which is a key

driver of DTC and GM expansion) should remain robust as 1) brand awareness continues to grow, 2) their owned-retail footprint expands,