Shares of Swiss sportwear maker On Running extended losses on Wednesday, falling another 0.4% at the open, marking a third consecutive day of declines. The stock has now dropped to $28.73, its lowest level since February 2024 and approaching its $24 IPO price from September 2021.
The selloff follows a 20% plunge on August 11 after On reported disappointing second-quarter results, the largest single-day drop in the company’s five-year public history. Weakness in the broader sportswear sector has compounded the pressure, with peers JD Sports cutting its full-year outlook by 14% and Adidas suffering a 12% intraday decline on its earnings day.
Dick’s Sporting Goods also posted its worst-ever daily loss of 28% on Tuesday, citing ongoing struggles at Foot Locker, which it acquired for $2.4 billion last year. The U.S. retailer noted declining demand for classic sneaker models and a shift toward brands like Ugg and Birkenstock, raising broader questions about the sustainability of the decades-long sneaker boom.
Analysts have responded swiftly to On’s underperformance. Since August 11, 19 analysts have lowered their price targets by an average of 16%, reducing the consensus target to $45.50 from $53.92. Jefferies cut its target to $20 from $24, while UBS maintained the highest target at $73, down from $83. Despite the downgrades, On retains a strong buy rating profile with 26 buy recommendations and just two sell ratings.
UBS framed the recent decline as a buying opportunity, attributing the 2026 outlook challenges to short-term sector dynamics rather than structural issues. In a note, the bank described On as one of the world’s fastest-growing sports apparel brands and argued the stock deserves a higher valuation than current market pricing reflects.
