Mbappe signs with On after dropping Nike

French soccer star Kylian Mbappe has ended his two-decade-long partnership with Nike and signed with Swiss sportswear brand On, the latest blow for the American brand as newer rivals gain ground in the athletic footwear market.

On plans to launch its first football boots in 2027, and also named former French player Thierry Henry as its director of football. On's US-listed shares were up 5% in premarket trading.

The Roger Federer-backed company is looking for growth in the Americas, which account for more than half of its revenue. On has focused on full-price sales, but has struggled in the region this year amid choppy economic spending.

Mbappé's move to On ends a relationship between the French national team captain and Nike that dates back to 2006, and comes at the heels of Nike's loss of recent World Cup winner Spain's Lamine Yamal to Adidas.

"We are proud of what we achieved together on and off the pitch. As he moves into the next phase of his career, we wish him continued success for what comes next," Nike said in a separate statement.

Nike had increasingly leaned on Mbappé as one of the sport's leading global ambassadors following the latter stages of soccer star Cristiano Ronaldo's career.

The World Cup winner remained a centerpiece of Nike's football marketing at this year's FIFA World Cup, most recently receiving signature editions of its Mercurial boots.

"Once again it (football) has led me to one of the biggest changes in my life. Now, I find myself surrounded by innovators who dream of the same things I do," Mbappé said on his social media accounts.

Reporting by Juveria Tabassum and Aishwarya Venugopal in Bengaluru; Editing by Leroy Leo/Reuters