On Holding beats earnings by CHF 0.05, revenue misses estimates
Swiss sportswear maker On Holding reported adjusted earnings per share above expectations but revenue fell short, sending shares lower in after-hours trading.
On Holding AG, the Swiss sports footwear and apparel company, posted adjusted earnings per share of CHF 0.15 for the second quarter, exceeding the CHF 0.10 consensus estimate compiled by Refinitiv. The company’s revenue, however, came in at CHF 790 million, below the CHF 820 million forecast.
Net income for the period rose to CHF 111 million from CHF 92 million a year earlier, reflecting higher gross margins and controlled operating expenses. Gross margin expanded to 51.2% from 48.7% in the same quarter of 2023, driven by improved product mix and pricing power.
Management attributed the revenue shortfall to softer demand in North America and Europe, partially offset by growth in Asia-Pacific. The company maintained its full-year revenue guidance range of CHF 3.3 billion to CHF 3.4 billion, though analysts noted the miss could pressure sentiment amid broader macroeconomic uncertainties.
Shares of On Holding fell more than 4% in extended trading following the release, extending losses from the regular session where the stock closed down 1.2% at CHF 32.50.
On Holding, which went public in September 2021, continues to expand its direct-to-consumer channel and international footprint, though competitive pressures in the athletic footwear market remain a headwind.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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