On Holding AG Reports Mixed Q3 Results

Investing.com — On Holding AG (NYSE:ONON) reported mixed results for fiscal Q3 and issued an annual revenue forecast slightly below expectations.

The company’s shares initially dropped around 7% in premarket trading on Tuesday before recovering to trade around 4% in the green following updates during the company's earnings call.

Q3 Financials Overview

• Earnings per Share (EPS): CHF 0.09 (est. CHF 0.15)
• Revenue: CHF 635.8 million (est. CHF 618.7 million)
• Direct-to-Consumer (DTC) Net Sales: CHF 246.7 million, up 50% YoY (est. CHF 219.7 million)
• Wholesale Net Sales: CHF 389.1 million, up 23% YoY (est. CHF 397.3 million)
• Adjusted EBITDA: CHF 120.1 million, up 48% YoY (est. CHF 108.4 million)
• Gross Margin: 60.6% (vs. 59.9% YoY and est. 60.1%)

Leadership Commentary

Martin Hoffmann, Co-CEO and CFO of On Holding, stated, "This quarter's exceptional results are a demonstration of the incredible work of our team, the growing global demand for the On brand, and the power of On's premium position. Our commitment to innovation and excellence has allowed us to capture this demand and deliver outstanding performance, particularly in our DTC channel."

Fiscal Year 2024 Outlook

For fiscal year 2024, On Holding raised its full-year net sales growth outlook to at least 32% on a constant currency basis, implying reported net sales of at least CHF 2.29 billion. In comparison, consensus estimates stand at CHF 2.31 billion. The company also expects an adjusted EBITDA margin at the upper end of its prior expected range of 16.0 – 16.5%.