On Holding's (NYSE: ONON) August price stumble may be creating a buy-the-dip setup because the underlying causes are either beyond the company’s control or supportive of its long-term outlook, which includes a high-margin, high-growth engine. The bad news is that revenue fell short of market expectations, but let's be fair: the market set a high bar given the company’s brand momentum, and one-offs are in play.
Tariffs and foreign exchange (FX) conversion are also factors. The good news, the silver lining to the bad, is that the revenue miss and arguably tepid guidance are due to wholesale. Not because wholesale is weak, to the contrary, but because of the company’s strategy.
