Shares of the On sneaker brand fell 22%. Tennis player Federer is no longer a billionaire.

Shares of On Holding, a Swiss manufacturer of premium sports footwear and apparel—whose shareholders include Roger Federer, one of the greatest tennis players in history— plummeted by 22% during trading on August 11 in New York. The decline was triggered by disappointing sales results in the previous quarter: the brand refused to offer discounts on older shoe models ahead of a product line refresh in the U.S.—a market currently experiencing a boom in promotions and sales. As a result of the stock price plunge, Federer is no longer a billionaire, according to Forbes.

On Holding shares fell 22.4% during trading on the New York Stock Exchange, to $30.11. The price had not fallen this low since May 2024.

One of On’s investors is legendary tennis player Roger Federer. He owns approximately 2.5% of the company: about 296 million Class A shares and 341 million Class B shares, according to the American magazine Forbes. Due to the collapse of On’s stock price, Federer’s net worth fell by at least $52 million on Tuesday—to $952.4 million—as a result of which the athlete is no longer considered a billionaire, the publication reports.

On's net sales, excluding currency fluctuations, totaled 850.3 million Swiss francs ($1.05 billion) in the second quarter. This figure fell short of analysts’ average expectations, which had forecast revenue of 881.4 million francs, according to Bloomberg .

The brand also slightly lowered its annual sales forecast, stating that it now expects growth “at the lower end of the 20% range.” The previous target was more optimistic —growth of “at least 23%.” Nevertheless, expected sales based on current exchange rates now range from 3.47 billion to 3.56 billion Swiss francs, which is comparable to the previously forecast 3.51 billion.

On also slightly raised its annual gross profit margin target to at least 65% (up from the previous 64.5%).

On’s more cautious forecast stems from the company’s efforts to maintain high prices for its sneakers and new apparel lines, while many other brands are resorting to markdowns to attract customers. As Bloomberg notes, it is precisely the widespread discounts in the U.S. and Europe—along with geopolitical factors and fears that the “sneaker boom” is coming to an end—that have caused the athletic apparel sector to lose its appeal to investors.

According to On co-CEO David Allemann, the trend toward massive clearance sales was particularly evident in specialty running stores in the U.S. To protect the brand from this pressure, the company deliberately limited shipments of older versions of its key products to local retailers ahead of the product line refresh. This strategy is paying off: the top executive added that On is already seeing “incredible” demand for the new Cloudmonster 3 model, released in April, which retails for $190.

“Our vision is to become the world’s most premium sports brand in the very, very long term,” added Allemann. “There are many innovations on the horizon, and now we just need to wait until this cycle gains full momentum.”

Forbes first recognized Roger Federer as a billionaire in August 2025—thanks specifically to his stake in On Holding and his sponsorship deals. The magazine estimated the athlete’s net worth at $1.1 billion at the time. The tennis player helped create the brand’s signature line of sneakers called “The Roger,” MarketWatch noted.

The overwhelming majority of analysts view On’s stock outlook positively: 24 out of 28 experts recommend buying the stock or expect it to outperform the market. Only three analysts advise holding the stock, and just one recommends selling.

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