On Holding Has Achieved Competitive Edge in Difficult Market Through Disciplined Brand Management

We rate On Holding as a narrow-moat company based on its brand intangible asset. Although sportswear is competitive, On is an established premium running footwear brand with its signature CloudTec soles. With high retail prices and fewer markdowns than competitors, the firm has gross margins that are among the highest in the sportswear space and have been rising as it has gained share. Gross margin improved to above 63% in 2025 from 54% in 2019 as On's share of the US sports footwear market rose to 5.4% from just 0.4% (per Euromonitor). On claims that its average selling price in the US wholesale market is at least 40% higher than the peer average.