Mbappé China Backlash Hits On Holding as Sponsors Exit and Shares Slip
ONON sits 22% above its 52-week low of $26.365.
Summary
Mbappé, signed by On in September to a 10-year ambassador deal that also gave him an ownership stake, is now at the center of a China controversy after a video in which he picked a meme referencing Mao Zedong. Chinese sponsors Dongpeng, Mengniu and Milkground ended their deals, state broadcaster CCTV pulled his ads and matches, and LaLiga broadcasts in China were suspended. On has already scrubbed his content from its Chinese social accounts. The exposure is real: Asia-Pacific is more than 20% of On's global sales, sales there are up more than 50% this year, and On runs over 80 stores in China with a target of 100 by year-end. Shares were down 3.5% in premarket, a modest hit relative to the company's size but a fresh reputational risk in its fastest-growing region.
At the time of this announcement, ONON was trading at $32.05 on NYSE in the Trade & Services sector, with a market capitalization of approximately $10.9B. The 52-week trading range was $26.37 to $51.08. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.