tennis great Roger Federer got an honest reason to smile this week, not because he has a ton of money and 20 Grand Slam titles.
Back in 2019, Federer inked a partnership with high-end sneaker brand On Holding. In the maker of sneakers with cloud soles, Federer also invested an undisclosed amount at an undisclosed valuation. He has since worked alongside the brand to develop his own footwear line dubbed The Roger. On Holding's stake is very likely to be worth multiples more than Federer's, amid an enthusiastic response to On Holding's IPO debut this week.
Shares of On Holding exploded 46% to $35 on its first day of trading on the New York Stock Exchange on Wednesday. On Holding ONON priced its IPO in a range of $24, the high end of an expected $20 to $22 range.
Shares went up another 15% to $40 on Thursday.
On Holding has now a market cap of $10 billion, a shade above the more established retailer Under Armour in $9.44 billion. However, Nike remains the king of the space — its market cap is $250 billion.
That's awesome, Yahoo Finance Live said co-CEO Marc Maurer about business trends from today.
What actually appears to be the case appears to be the case.
For the six months ended June 30, sales for Swiss-based On Holdings rose 85% to 315 million francs $56.49 million Adjusted EBITDA earnings before interest, taxes, depreciation and amortization rose to $47.3 million francs $8.48 million from 15.9 million francs $2.85 million a year ago.
On Holding is looking to capitalize on the interest in green-friendly apparel and footwear, publishing a $29.99 a month subscription program that ships a person's sneakers and recycles them for a new pair. The company also believes that the return to office after the Pandemic will be a key sales opportunity.
After the pandemic, we will see people coming back to the office and they are not going to put on their leather shoes. They are going to wear their sports clothes, Yahoo Finance Live co-founder and co-executive chairman Caspar Coppetti told.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow BrianSozzi on Twitter and LinkedIn.