On Holding Q2 Net Sales Miss Estimates, Stock Plunges 22%
On Tuesday, On Holding, the Swiss manufacturer of running shoes, announced net sales of CHF 850.3 million for the second quarter, which did not meet analyst predictions. This disappointment led to a significant decline in the company’s stock, plummeting by as much as 22% to reach a low not seen in nearly two years, as reported by Reuters. Although sales fell short, net income soared by 356% during the quarter, largely due to a strong direct-to-consumer strategy. The drop in stock prices reflects investor worries about the company’s growth potential and its ability to fulfill market expectations. The second quarter's results highlight the challenges within the athletic footwear sector amid evolving consumer trends and fierce competition.
Key facts
- On Holding reported Q2 net sales of CHF 850.3 million.
- Net sales missed analyst estimates.
- On stock fell as much as 22% to a roughly two-year low.
- Net income jumped 356% in the quarter.
- Direct-to-consumer business drove the profit surge.
- The earnings report was released on Tuesday.
- The stock decline was reported by Reuters.
- The company is a Swiss running shoe manufacturer.
Entities
Institutions
- On Holding
- Reuters
Locations
- Switzerland
Sources
- Quartz —