What's Wrong With On Holding Stock?

On Holding's stock has declined 23% in 2026 due to an intentional slowdown in wholesale shipments to promote full-price sales. Despite the near-term headwinds, the company maintains strong fundamentals with 34.3% direct-to-consumer sales growth, 65.4% gross margins, and 56.2% apparel sales growth. Management projects low-20% constant-currency sales growth for 2026 and is expanding into football and golf with a $7 billion sales target. The stock trades at a reasonable 21x trailing earnings with a PEG ratio of 0.49, below analyst consensus price target of $43.55.