NKE Slips while DECK Soars...Is ONON the next Big Winner?

You’ve probably noticed it.

On your morning run, in the coffee shop line, walking through the airport — more and more people are wearing those distinctive running shoes with the little honey-comb cloud pods on the sole. A few years ago, you might have seen a pair here or there. Now they’re everywhere.

That used to be Nike.

Once the default choice for runners, the Swoosh has stumbled in performance running, opening the door for faster-moving upstarts to win the category.

Two brands have picked up the pace. One is Hoka, which just helped Deckers (DECK) deliver a blowout quarter and a double-digit stock jump two weeks ago.

The other reports earnings on Tuesday morning: On Running (ONON).

It’s a brand in that same “suddenly everywhere” phase, and it’s heading into its next report with a setup that has our attention.

ONON has quietly become a favorite for runners, walkers, and anyone who wants a shoe that can go from the gym to the office without looking like gym gear.

The Cloudsurfer 2 is building buzz in the running community for its smooth ride and comfort. The Cloud 6 relaunch sold so well at a higher price point that it became the most successful launch in company history. Apparel is growing fast. Asia-Pacific is surging. And direct-to-consumer engagement is climbing.

Shares are down 16% this year, expectations are low, and our consumer data is showing a pattern that looks very familiar.

Here’s what the data show and why this is our Trade of the Week…

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