Mbappé has become the face of the Swiss brand On. What does the loss of this star mean for Nike?

The Swiss apparel brand On has signed a partnership agreement with French soccer superstar Kylian Mbappé to develop sportswear and promote the brand. In doing so, On is challenging the dominance of Nike and Adidas in the sport, according to Bloomberg. Mbappé had been with Nike for 19 years, but his contract expired this summer, according to The Athletic. Two years ago, Nike lost another soccer star who defected to its main competitor.

Kylian Mbappé, the 2018 World Cup champion and the all-time leading scorer in World Cup history, will work directly with On’s product teams, allowing him to combine his “elite perspective” with the development and testing of future soccer cleats and apparel, as well as representing the brand off the field, On said. In addition, On has hired former French national team and Arsenal player Thierry Henry as its director of soccer. Financial details of the partnerships with him and Mbappé have not been disclosed.

On believes that LightSpray technology—in which robots spray-coat the upper part of a shoe with thread in a matter of minutes—will be an advantage in soccer. The goal is to create products that are “exceptionally light, precise, and fit the athlete like a second skin,” the statement notes. The company introduced this technology in 2024 and has expanded its use from high-end marathon running shoes to more mainstream products, according to Bloomberg.

On shares soared nearly 4% at the opening of U.S. trading but then lost momentum and briefly dipped into negative territory. The shares subsequently resumed their upward trend and were trading about 0.6% higher. Nike shares fell 1.3%, while Adidas shares closed down 0.1% in Frankfurt.

Mbappé has been partnered with Nike since he was eight years old: the company has supported him throughout virtually his entire development and rise to become one of the biggest stars in world soccer, according to BeinSports. Losing Mbappé will be a serious blow to Nike, especially after 19 years of building a relationship with one of the most commercially successful stars in world soccer, the publication notes. In addition to his status as one of world soccer’s top talents, Mbappé has gained popularity thanks to his sense of style and his participation in Dior advertising campaigns, Bloomberg notes.

What’s more, Nike lost Mbappé two years after parting ways with another soccer star—the Spaniard Lamine Yamal—who signed a contract in 2024 with Nike’s main competitor, Adidas.

Although soccer has long been the world’s most popular sport, in recent years it has become an even more powerful source of casual wear and fashion items for Nike, Adidas, and Puma, as Bloomberg points out. This summer, the brands saw a surge in sales of jerseys featuring the national teams they sponsored at the World Cup.

That said, until recently, soccer faced less of a threat from new brands than, for example, running: in that sector, newcomers—including On and Hoka—have already captured market share, including from Nike, thanks to their innovative footwear, Bloomberg added.

Nike shares are currently trading at a 12-year low. The company's shares will be removed from the S&P 100 index. There is also a growing risk that the stock could be dropped from the Dow Jones Industrial Average "blue-chip" index, Reuters reported.

The company has been growing rapidly since its founding in 2010: starting with running shoes, it has expanded its product line to include tennis, as well as products for training and outdoor activities, according to Bloomberg. In addition, it is increasing its revenue from apparel—both athletic and casual. Among its investors is legendary tennis player Roger Federer.

On September 22, On plans to hold an investor day, during which it is expected to present its financial goals for the next few years.

On’s first move in soccer was the December signing of a contract with Swiss rising star Sidney Schertnleib, who plays for the women’s team of Spain’s FC Barcelona, to collaborate on products for training and everyday life. The statement notes that she will now also represent the brand in soccer, helping to develop products for the women’s game.

On Holding's stock has fallen 40% since the beginning of 2026. But analysts who track the stock generally recommend buying it: the stock has 21 “Buy” ratings and six “Overweight” ratings, compared with five “Hold” ratings, according to MarketWatch.

Nike's stock is down 44% year-to-date. However, the most common analyst recommendation for the stock is "hold": 26 "Hold" ratings versus nine "Buy" ratings, with three "Overweight" and five "Sell" ratings.

This article was AI-translated and verified by a human editor