Stock Market Today, Aug. 11: On Holding Stock Plunges on Worst Day Ever

On Holding (NYSE:ONON) , a premium performance running shoes and activewear brand, closed at $30.91, down 20.29%. The stock plunged after second-quarter sales missed estimates and management lowered its full-year growth outlook, as investors are watching wholesale sales and North America growth next. Trading volume reached 42.2 million shares, coming in about 604% above its three-month average of 6.0 million shares. On Holding IPO'd in 2021 and has fallen 12% since going public.

The S&P 500 (SNPINDEX:^GSPC) closed at 7,728, down 0.32%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) closed at 26,445, down 0.60%. Among specialty athletic footwear and sportswear apparel peers, Deckers Outdoor (NYSE:DECK) fell 3.69% to $93.84, while lululemon athletica (NASDAQ:LULU) slipped 1.71% to $125.61.

On surprised investors somewhat with a strategic pivot. The initial reaction led to the stock’s worst trading day ever. On had previously set expectations to achieve a minimum sales growth of 23% for 2026. Management adjusted that to say it now expects sales growth in “the low-20% range.”

The current strategy prioritizes higher-margin, direct-to-consumer (DTC) sales, while deliberately restricting shipments to retailers. Management stated, “On is deliberately managing wholesale sell-in to protect full-price integrity in a promotional marketplace, ensuring a clean runway for On's upcoming breakthrough innovations leading into 2027.”

On has become a popular, premium athletic footwear brand. While there is always competition and apparel consumer tastes can be difficult to predict, On’s valuation now looks enticing as it focuses on a more profitable business.

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