On Running stock surges on Q4 earnings

Yahoo Finance Live's Julie Hyman and Brian Sozzi discuss the rise in stock for On Running amid fourth quarter earnings.

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JULIE HYMAN: Let's take a look at some other individual stocks that we're watching here, Sozz. And one of them is On Running. Now, this is a company that you and I have been following closely since it came public. I don't know what you have on your feet right now. Might be On sneakers. I don't know. And if you look at the numbers here, it does look like it had a wider loss than estimated. But the company's forecast is pushing up the shares some 8% this morning.

And just on an anecdotal basis, man, I've been seeing a lot of these sneakers on people's feet. There's really been an explosion. I mean, On-- if you go back five years, On was a pretty little known brand just emerging out of Switzerland. Then you had the likes of Roger Federer signing on. And you had the company going public. And there just has been, again, anecdotally, a big, big increase in demand for these shoes.

BRIAN SOZZI: And you know why, Julie, I finally became an On believer about 6 and 1/2 months ago. Picked myself up two pairs of these sneakers. And why I think you're starting to see them really pop up everywhere, the collaboration engine is starting to kick in as well, they just work. They are just a very comfortable sneaker.

And I think you're seeing retailers take note of this. They're talking about On on their earnings release, preorders are looking very well. The pipeline of business looking very strong into the second half of this year. And again, it's just been an amazing story. And, look, my latest pair that I bought, I don't even take it out in the rain, Julie. I keep them protected in a bag. They don't touch any wet. They just get used in the gym. I wipe them down after I use them. I mean, they've become my gym baby. I love these sneakers.

JULIE HYMAN: They do make waterproof ones for what it's worth.

BRIAN SOZZI: I don't care. They're still not touching the rain. I don't want them in the rain. I just love the fit so much. And I understand the financials. Margins up. Sales up in wholesale and direct to consumer. I mean, clearly, you're seeing an acceleration in this retail story. It's happening.

JULIE HYMAN: I mean, I think it's not just-- I think there's also sort of a cachet at this point as well. And they've been doing some collabs. They did one with Loewe, the Spanish luxury brand, leather brand traditionally. And so that doesn't hurt matters either. I think you've got now this sort of reputational push from a brand like this. The question is, can that be sustained? Is it a fad? Or is it a longer term trend that people are going to be wearing these sneakers? I think that sort of remains to be seen.