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On Holding's Mbappé deal a 'direct challenge to Nike and Adidas': Analyst
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Swiss sportswear company On Holding has signed World Cup champion Kylian Mbappé, whose contract with Nike expired this summer, beating out Adidas and Under Armour for the partnership. Evercore ISI analyst Michael Binetti called the move 'a direct challenge to Nike and Adidas,' which hold a near-monopoly in soccer. On stock rose slightly after the deal but remains down 40% year to date amid a challenging retail environment, while Nike fell 2% on the announcement day. The company also named soccer pundit Thierry Henry as director of football. On has previously signed former Nike spokesperson Roger Federer, who took a 3% stake in the company in 2019 and developed his own shoe line. The brand now has roughly 300 partnerships, including with tennis stars Iga Swiatek and Ben Shelton, and a collaboration with Zendaya that attracted younger customers. The expansion into soccer was announced ahead of On's Investor Day in Zurich and could help the company become a bigger competitor in the global sports market.
Source report
Author: Brooke DiPalma, Senior Reporter Source: Yahoo Finance
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.
A History of Tapping Former Nike Spokespeople
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.
Expanding Athlete Partnerships and Product Lines
The company now has roughly 300 partnerships, including with:
- Tennis star Iga Swiatek
- Two-time Boston Marathon champ and two-time New York City Marathon champ Hellen Obiri
- Runner Yared Nuguse
- 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.
Product Development Strategy and New Verticals
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.
Looking Ahead
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.
Kylian Mbappe of Real Madrid CF in action during the LaLiga EA Sports 2026/27 match between Elche CF and Real Madrid at Estadio Manuel Martinez Valero on Sept. 15, 2026, in Elche, Spain. (Francisco Macia/Getty Images)
Source
Yahoo FinanceWestern
Part of this Story
Kylian Mbappé ends Nike partnership, signs with On to lead football boot expansion