On Holding (NYSE: ONON) shares fell between 3% and 6% on October 27, 2026, after brand ambassador Kylian Mbappé made a remark about Mao Zedong that drew backlash in China. Mbappé reportedly lost Chinese sponsors after the remark. The move matters because China is a sizable market for the Swiss running brand, and Mbappé is the centerpiece of its new soccer push.
Analyst Peter McGoldrick of Stifel kept a Buy rating and a $41 price target on the stock, according to Investing.com. He left Asia-Pacific revenue and profit estimates unchanged. He also flagged a new risk: that Chinese consumers and platforms link On to the controversy.
How far the shares fell
Reports on the size of the drop differ because the stock moved during the day. Börse Express said it lost as much as 6% in pre-market trading and later cut the loss to about 3%. The broader market rose, so the move looks specific to On, according to Perplexity Finance and Börse Express.
| Source | Reported move |
|---|---|
| Investing.com | Down 3.6% |
| Börse Express | Down as much as 6% pre-market, about 3% later |
| Perplexity Finance data | Closed at $32.17, down 3.01%; up about 0.93% after hours |
| Invezz | Headline: 4% slump |
Börse Express put the stock about 37% below its yearly high of $51.08. It cited a deliberate slowdown in US wholesale and a miss on second-quarter revenue as earlier drags.
What happened to Mbappé's sponsors
Investing.com said Mbappé referred to a meme that put his face on Mao's body. In a clip tied to a talk show called The Bridge, he called Mao a "Chinese dictator." Börse Express quotes the line as "some guy – I think he's a Chinese dictator." The clip trended on Weibo, the Chinese social platform.
Mbappé later said he has "deep respect for the Chinese people" and apologized to "everyone my words have upset," according to Investing.com.
Dongpeng (beverages), Mengniu (dairy) and Milkground (cheese) reportedly ended their sponsorship deals with him, per Investing.com and Invezz. The sources give no date for the terminations. Börse Express confirms at least Dongpeng and Mengniu. Content featuring him was also reportedly removed from the official Weibo accounts of Western brands including Dior and Hublot.
Benzinga, via TradingView, reported that China's state broadcaster dropped LaLiga games and any appearances by Mbappé, and that ads featuring him were removed. That is a report, not a confirmed statement from the broadcaster.
How much China matters to On's sales
Stifel estimates China is about 10% of On's calendar-2026 revenue and Asia-Pacific about 21%. It calculates that a hypothetical 10% fall in China sales would cut consolidated revenue by about 1% before any offsets, per Investing.com.
Invezz, citing second-quarter results, said Asia-Pacific has accounted for more than 20% of sales and was On's fastest-growing region. Its summary labels China itself as above 20% of sales, which conflicts with Stifel's estimate. Hopone uses the Stifel figure for China. A blog post cited by Tribuna says On has more than 80 stores in China and targets 100 by year-end; that figure is less reliable.
How tightly the Mbappé deal binds the brand
On named Mbappé a global ambassador on September 18, 2026, as the centerpiece of its entry into soccer. His role goes beyond soccer, per Investing.com. Reports on the terms differ: Börse Express describes a ten-year deal, while Invezz and Tribuna say it includes equity. Hopone could not confirm the terms.
On has not yet commercialized soccer products. McGoldrick wrote that "the nascent relationship with Mbappé may not have yet created an association with Chinese consumers and the On brand."
The new concern is that Chinese consumers and platforms could associate On with the controversy, reducing marketing effectiveness, or causing a change to marketing strategy in the Chinese market.
Peter McGoldrick, Stifel, via Investing.com
What analysts say the risk is
Stifel noted the partnership exposes On to backlashes in consumer sentiment, according to Investing.com France. It said past brand-specific boycotts in China have lasted from a few months to more than a year in some cases, per the German edition. Stifel is not building any damage into its forecasts.
Two other brokers' ratings were reported alongside the episode; the sources do not say when they were issued. Jefferies reiterated Underperform with a $20 target, citing marketing spend rising to about 14% of sales in 2026 from 12% and calling the 2029 targets too ambitious. KeyBanc kept Overweight with a $37 target.
What to watch before Q3 results
Stifel said it will watch three things: whether Chinese platforms target On, whether On changes or removes Mbappé-related marketing, and whether weaker sentiment turns into weaker sales.
On reports third-quarter results on November 10, 2026, before the US open, with a call at 8:00 a.m. ET, per Perplexity Finance and Börse Express. For another brand's China plans, see Adidas names outdoor and street dance as China growth drivers.
Sources
- Investing.com: Is the China risk real for On Holding after Mbappé backlash?
- Investing.com France: Stifel signale un risque pour On Holding lié à la polémique Mbappé en Chine
- Investing.com Deutsch: Stifel sieht Risiken für On Holding nach Mbappé-Kontroverse in China
- Börse Express: On Holding Aktie: Mbappé-Eklat belastet
- Invezz: On shares slump 4%: How Mbappe's joke on Mao triggered Tuesday's fall
- Benzinga (via TradingView): On Holding Stock Drops After Mbappé's Controversial Comment
This article was written with AI by the Hopone Newsroom, from the sources it cites. Figures marked “Hopone calculation” are our own arithmetic from those sources. Nothing here is investment advice.