On Holding Shares Dip as Ambassador Mbappé Sparks China Backlash

On Holding AG (NYSE: ONON) shares fell after its new global ambassador, soccer star Kylian Mbappé, sparked a consumer backlash in China, raising concerns for investors about the Swiss sportswear brand's growth prospects in the crucial market. The stock declined 3.6% on Tuesday following reports of Mbappé's controversial remarks referencing a "Chinese dictator."

Analyst Weighs Limited Immediate Impact

Despite the share price reaction, analysts suggest the immediate financial risk to On may be limited for now. In a note cited by Investing.com, Stifel analyst Peter McGoldrick reaffirmed a Buy rating and a $41 price target on the stock, keeping his revenue estimates for the Asia-Pacific region unchanged.

McGoldrick estimates that China accounts for approximately 10% of On's revenue, meaning a hypothetical 10% decline in Chinese sales would translate to only a 1% hit to consolidated revenue. The key factor mitigating the risk is the newness of the partnership. On has not yet commercialized its soccer product line with Mbappé, which may prevent a strong association between the athlete and the brand in the minds of Chinese consumers.

Mbappé Controversy and Corporate Fallout

The backlash has already led to commercial consequences for the French soccer star, who has since apologized. According to reports, several brands have distanced themselves from Mbappé in China:

• Three Chinese sponsors—Dongpeng, Mengniu, and Milkground—reportedly ended their agreements.
• Western brands like Dior and Hublot were said to have removed content featuring the athlete from their official Weibo accounts.

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The primary risk for On is that Chinese consumers and digital platforms begin to associate the company with the controversy. Stifel noted this could reduce marketing effectiveness or force a change in strategy in the region.

Historical Precedents Underscore Risk

Past consumer boycotts in China highlight the potential for significant commercial damage if the situation escalates. Stifel pointed to several historical examples where brand controversies led to sharp sales declines:

• H&M saw its China sales fall 23% year-over-year in a single quarter in 2021 following the Xinjiang cotton controversy.
• Adidas experienced revenue declines of 16% and 15% in Greater China in two consecutive quarters during the same period.
• Lululemon recently slashed its 2026 China revenue growth outlook from ~20% to the high-single digits following a local marketing controversy.

For now, analysts are in a watch-and-wait mode, monitoring whether the negative sentiment spreads from Mbappé to the On brand itself. The nascent stage of the partnership may provide a buffer, but the incident underscores the geopolitical risks for global brands operating in China.