Mbappé's Remark on Mao Triggers 6% Drop in On Holding Stock on Wall Street
Kylian Mbappé's remarks on Chinese leader Mao Zedong triggered a 6% drop in On Holding stock on Wall Street amid a commercial backlash in China, threatening the sportswear brand's expansion strategy.
A careless remark by football star Kylian Mbappé on Tuesday sent ripples through Wall Street, triggering a sharp sell-off in shares of Swiss sportswear maker On Holding.
Trading under the ticker ONON on the New York Stock Exchange, On Holding shares plummeted by up to 6% during the session before paring losses to trade down about 3.5%. The downturn was fueled by a public backlash in China following comments made by Mbappé regarding the country's historical leader, Mao Zedong.
The controversy erupted after a video circulated on social media showing the Real Madrid forward being asked about the funniest meme he had ever seen of himself. Mbappé referenced an image where his face was superimposed onto the body of Mao, describing the figure as a Chinese dictator. The remarks triggered angry reactions in China, where Mao remains a central historical figure, and disrespectful comments toward him are viewed as an affront to national sensibilities.
Business Fallout in China
Although Mbappé subsequently apologized and clarified that he holds deep respect for the Chinese people and their history, the commercial backlash was swift. Three Chinese companies—a beverage manufacturer and two dairy producers—announced the termination of their endorsement deals with the footballer. Concurrently, reports emerged that Chinese state television had halted the broadcast of matches and events featuring the Spanish La Liga and Mbappé.
For On Holding, the timing is particularly problematic. Just last September, the company announced a landmark ten-year partnership with Mbappé following the conclusion of his long-standing relationship with Nike. The star forward was tapped to serve as a global brand ambassador and assist in developing football boots and sportswear.
The partnership was designed to help On, renowned primarily for its running shoes, break into the global football market and compete with established giants such as Nike, Adidas, and Puma. Ironically, the star player hired to open doors in new markets now threatens to become a liability.
Market Outlook and Analyst Estimates
Analysts at investment bank Stifel estimate that China accounts for approximately 10% of On Holding's projected revenues for 2026. However, Stifel analysts refrained from cutting the company's revenue and profitability forecasts at this stage, noting that the collaboration with Mbappé is still in its infancy and joint football products have yet to be marketed on a significant scale in China.
While investors have begun pricing in potential risks, there is still no definitive evidence of a tangible impact on the company's actual sales.
