VFC - On Holding: The Next Consumer Apparel Juggernaut?
2024-06-25 07:03:54 ET
Summary
- Nike is the current champion of the consumer apparel market, with $50 billion in sales and $5 billion in profit over the last twelve months alone.
- ON Holding is a new challenger in the industry, and while the company's financials are a fraction of the size, the company sports significant growth potential and a unique appeal.
- While we're not sure about ON's ability to reach NKE in the short term, the company has demonstrated very strong product, marketing, and operational execution.
- Trading at a reasonable valuation for the potential growth, ONON is a 'Strong Buy' in our book.
In the world of consumer apparel, there's no doubt that Nike ( NKE ) is currently the king .
The company, which is worth roughly $146 billion in market cap (as of last close), did more than $50 billion in sales and $5 billion in profit over the last twelve months, which puts it in a class of its own:
On a revenue basis, this industry megalith is roughly 5x larger than its closest competitor, V.F. Corp ( VFC ), and on a profit basis, NKE is more than 3x the size of closest competitor Lululemon ( LULU )....
On Holding: The Next Consumer Apparel Juggernaut?