On Holding’s (NYSE:ONON), shares rose by around 10% after the Swiss-based company announced second-quarter earnings that were better than analysts expected and increased its guidance for full year.
The net sales of CHF 749.2 millions, up 32% from the previous year, were higher than expected by CHF 703.8.
Direct-to-consumer (D2C) sales grew by 47.2%, or CHF 308,3 million in constant currencies.
The wholesale sales were also up, rising by 23.1%, to CHF 441.0 millions, which is equivalent to an increase of 28.8% in constant currencies.
EBITDA (earnings before taxes, interest, depreciation and amortization) increased by 50% from CHF 90.8 million to CHF 136.1 millions in the same time period of last year.
As a result of operational efficiency and increased sales, the adjusted EBITDA improved from 16.0% to 18.2%.
The adjusted profit per share was negative CHF 0,09, falling short of analyst expectations for a CHF 0.14% gain.
Stocks were trading higher by about 7% when this article was written.
Performance driven by strategic plan
Martin Hoffmann, CEO and CFO of the company, attributed its strong performance to the execution of a long-term strategic plan.
Hoffmann stated that “we are one-and-a-half years into our strategic three year plan and our outstanding results show the consistent execution of the plan and our unwavering commitment.”
Rapid expansion of the company in direct-to consumer channels demonstrates its capability to increase brand visibility while increasing profitability.
The wholesale growth rate also remains solid. This is a sign of strong retail partners and a high demand for products in foreign markets.
The management stated that these results are further proof of scalability for its business model which includes premium performance apparel and footwear with an expanded global footprint.
All key metrics are given guidance
On Holdings’ strong performance in recent months led the management to increase full-year financial guidance on all key metrics.
The forecast for net sales is now at least 31 percent year-over-year, on constant currency terms. This compares to the prior estimate of 28%.
This implies that reported net sales are no lower than CHF 2,91 billion at current exchange rates. The previous projection was CHF 2,86 billion.
The firm also increased its guidance for gross profit margin to 60.5%-61.0% from 60.0%-60.5%.
Forecasts for the adjusted EBITDA are now in a range between 17.0% to 17.5% as opposed to an earlier 16.5%-17.5%.
On Holdinig pointed out that the updated projections include the effect of the additional reciprocal duties introduced by the US Presidential Executive Order dated July 31, 2025.
On Holding will enter 2025 in a positive mood, with a double-digit growth rate, increased profitability and expansion of both the direct-to consumer and wholesale channels.
The ICD published this article on Holdings shares jumping 10% following strong Q2 sales and an upgraded outlook.
