On Signs Mbappé as Soccer Push Challenges Nike’s Athlete Stronghold

On Takes Its Brand Battle With Nike Into Soccer

On Holding (ONON) is making its formal entry into soccer with one of the sport’s most prominent athletes. The Swiss sportswear company signed Real Madrid and France forward Kylian Mbappé, who is leaving a longstanding relationship with Nike (NKE), to serve as a global ambassador and work directly with On’s product teams.

The announcement created an immediate market reaction. On shares rose as much as 5.6% in premarket trading, although later gains moderated, while Nike traded roughly 1% lower in several supplied market snapshots. The moves come against a difficult year for both stocks, with On down more than 40% and Nike also down more than 40% in 2026.

Key Points

• On signed Kylian Mbappé as a global ambassador and product development partner as the company formally enters the soccer market.
• Mbappé is leaving Nike, adding to other recent high-profile athlete departures from the sportswear company.
• On shares initially jumped as much as 5.6% premarket, while Nike traded lower, but both stocks remain down more than 40% in 2026.

On Expands Beyond Running and Tennis

On’s agreement with Mbappé goes beyond a traditional endorsement. The company said the soccer star will work directly with its product teams to develop and test future footwear and apparel while representing the brand globally.

On also named French soccer legend Thierry Henry as Director of Football. Henry has worked behind the scenes on the company’s soccer strategy and products since late 2025. Swiss international and Barcelona player Sydney Schertenleib will contribute to products designed for the women’s game.

The company plans to bring its Lightspray manufacturing technology into soccer footwear. The technology uses a robotic continuous-filament spraying process and is being adapted for the performance requirements of professional soccer.

The expansion gives On another category beyond the running and tennis markets for which the brand is already known. It also arrives while the company continues to report sales growth. Second-quarter 2026 net sales were $1.05 billion, up 13.5% on a reported basis and 21.6% at constant currency. Gross margin reached 65.4%, while direct-to-consumer sales represented 45.7% of net sales.

Management also raised its full-year gross margin floor to at least 65%, reiterated an adjusted EBITDA margin range of 19.5% to 20%, and targeted low-20% constant-currency net sales growth.

Why Does Mbappé’s Move Matter for Nike?

The significance for Nike comes from both the athlete and the category.

Mbappé had a longstanding relationship with Nike before moving to On. His departure follows other high-profile athlete changes this year, including tennis player Emma Raducanu moving from Nike to Uniqlo and Arsenal captain Martin Odegaard switching from Nike to Adidas.

At the same time, soccer has recently produced strong results for Nike. The company said kit sales at the start of the recent World Cup were 2.5 times the comparable period in 2022, while its Mercurial launch was described as the fastest-selling 24-hour launch for cleated footwear in Nike Direct history.

That makes On’s entry a direct expansion into a category where Nike already has an established presence.

Nike is also dealing with broader business pressure. Its recent quarterly revenue was $10.97 billion, down about 1% from a year earlier. Nike Direct declined 7%, while Greater China remained a significant area of weakness.

The stock has fallen more than 40% in 2026 and has traded near its lowest levels in more than a decade. Nike is also scheduled to leave the S&P 100 after an 18-year run.

What Comes Next for the On-Nike Competition?

The next phase centers on turning On’s athlete partnerships and product development into an actual soccer business.

Financial terms of the Mbappé agreement were not disclosed. On said Mbappé will participate in developing and testing footwear and apparel, while Henry’s role gives the company dedicated leadership for its soccer strategy.

The initial ONON stock reaction therefore reflects a new strategic initiative rather than a change to the company’s reported financial results. Shares jumped in premarket trading before giving back much of that advance during the session.

That distinction matters given the stock’s broader performance. On entered Friday down more than 40% for the year despite its recent revenue growth and margin performance.

Nike faces a different challenge. Its existing soccer business has produced strong product launches, but the company is simultaneously dealing with declining revenue, weaker direct sales and continued pressure in China. Losing Mbappé adds another competitive development as Nike works through those broader issues.

What It Means for Investors

The Mbappé partnership highlights a shift in competition between On and Nike that extends beyond running shoes.

For On, the announcement expands its product ambitions into soccer while pairing its Lightspray technology with prominent athletes including Mbappé, Henry and Schertenleib. The company enters the category after reporting 21.6% constant-currency sales growth in its latest quarter.

For Nike, the development comes while the company is already navigating weaker sales trends and several high-profile athlete departures. At the same time, its recent soccer performance shows that the category remains an area where Nike has generated strong consumer demand.

The contrasting stock reaction captures the immediate investor response, but both companies remain under significant pressure in 2026. ONON and NKE have each declined more than 40% year to date.

Conclusion

On’s signing of Kylian Mbappé marks a significant expansion of its sportswear strategy, taking the company into soccer with a global ambassador who previously represented Nike.

The announcement also puts the competitive relationship between the two companies into sharper focus. On is expanding into another major sports category while maintaining double-digit sales growth, while Nike is defending an established soccer business amid weaker companywide revenue trends and a steep decline in its share price.

For the market, the next measurable developments will come from how On translates its soccer initiative into products and sales, and how Nike’s existing soccer strength performs alongside its broader turnaround efforts.

FAQs

Why did On Holding sign Kylian Mbappé?

On Holding signed Kylian Mbappé as a global ambassador and product development partner as part of its entry into the soccer market. Mbappé will work with On’s product teams to develop and test future soccer footwear and apparel.

What does Kylian Mbappé’s move mean for Nike?

Mbappé is leaving a longstanding relationship with Nike to join On. His departure adds to other recent high-profile athlete moves away from Nike as On enters a soccer category where Nike already has an established presence.

How did ONON stock react to the Mbappé announcement?

On Holding shares rose as much as 5.6% in premarket trading following the announcement, although the gain moderated later. ONON remains down more than 40% in 2026.

How is On Holding performing financially?

On Holding reported second-quarter 2026 net sales of $1.05 billion, up 13.5% reported and 21.6% at constant currency. Gross margin was 65.4%, and direct-to-consumer sales represented 45.7% of net sales.

How is Nike performing in 2026?

Nike’s recent quarterly revenue was $10.97 billion, down about 1% from a year earlier, while Nike Direct declined 7%. NKE stock has fallen more than 40% in 2026 and has traded near its lowest levels in more than a decade.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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