Swiss athletic footwear brand On Holding made a big splash Friday by announcing it will enter the soccer market through a partnership with Kylian Mbappe, but the news drew little enthusiasm on Wall Street, where the sport is not seen as nearly as important as it is in Europe.
Beyond his role as a global ambassador, the 2018 World Cup winner plans to work directly with On’s product teams to incorporate his own personal vision into the development and testing of future soccer shoes and apparel.
In a statement, the Zurich-founded group, which until now has offered models aimed at tennis, gym training or running, said it wants to bring a “new perspective” to the world of soccer.
To prepare for its move onto the field, it plans in particular to lean on its proprietary LightSpray robotic manufacturing technology unveiled in 2024, which revolutionized shoe design by outperforming traditional methods with a production process based on a high-performance upper made from a continuously sprayed filament.
“When we enter a sport, we want to be the brand of the future, through real innovation and contemporary design,” said David Allemann, the equipment maker’s co-founder and co-CEO, quoted in the press release.
Alongside Kylian Mbappe, two other key soccer figures will support On’s launch in the sport: Thierry Henry as “director of soccer” and Swiss international Sydney Schertenleib, who plays for FC Barcelona, to win over a female audience.
A sport that remains secondary stateside
All of these initiatives were praised by Wall Street analysts, who nonetheless cannot help noting that soccer is played by less than 7% of the US population, despite the recent success of the World Cup.
“Even if soccer remains a minor sport in the United States, it would not be surprising to see On capitalize on the lifestyle halo around the game, both in footwear and in apparel,” the teams at Piper Sandler said.
“After all, the sport has long been a source of inspiration for brands like Puma, adidas or Nike,” the broker noted, recalling that the Samba model was originally a soccer shoe.
“Moreover, one of the key criteria for consumers when choosing a shoe remains comfort, especially for performance models like cleats, Piper Sandler continues, which means its LightSpray technology should emerge as a unique, differentiating advantage in the market.”
Many industry professionals argue, however, that the athletic fashion market is still very crowded today, weighed down by weak consumer sentiment, persistent inflation pressures, intensifying competition and a flood of promotions.
About two hours after the open, On shares were up 0.2% at $27.4, a sign it will take more than a high-profile deal with a global star to restart the stock’s momentum.
The group is also scheduled to host an investor day at its Zurich headquarters next Tuesday to provide an update on its business and outlook.
