Schwab Network on $ONON (Nov 10, 2026)
ONON is under pressure despite an earnings beat (66 cents vs 46 cents) and revenue up 17% to $1.15 billion, with Asia Pacific sales up 31% and DTC up 24.8%, because it raised gross margin outlook but kept full-year sales guidance unchanged and investors may have wanted more; it sold off after last quarter's beat too. The stock is giving back a roughly 6% past-month gain and was down about 19% year to date, in a tough footwear market; a cited $46 overweight target versus $35 implies some upside.
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Let's talk about on holding. >> Yeah, this one is under some pressure. It's been a difficult uh time for the space across the board and the shoe dropping for on holding despite better than expected results uh for the sneaker maker.
The company when you convert to dollars earning 66 cents per share that's a beat stream was looking for 46 cents. Revenue 1.15 billion again converted to dollars that is also a beat.
That's a uh increase of 17%. You had strong growth especially in Asia Pacific sales surged some 31% there. We always look at DTC direct to consumer that rose about 25% 24.8 to be precise.
Wholesale up 13.2% 2% but DTC really strong there. They raised their gross margin outlook but they kept their fullear sales forecast unchanged and maybe investors were looking for a bigger increase to guidance but this happened in the last quarter too beat last quarter stock sold off.
now over the past month on holdings had a little bit of a run but it's giving all of that back now because over the past month it was up about 6% roughly uh there but now giving all of that back in early trade uh and year to date even with that run recently. The stock coming into today was down about 19%.
>> Yeah. And we think about the competitive landscape. I mean, you mentioned Nike, but really um overall footwear and it's been a tough game. And so, um just to have numbers come in sort of in line and reaffirm guidance and things like that, but it's not enough as you said.
Um look, I saw $46 target overweight from Caner and it's at $35. So, that's some upside right there.