On shares fell 22% after Q2 revenue of CHF850.3m missed the CHF878.2m consensus. Americas growth slowed to 13% from 17.1%. DTC hit a record 45.7% of sales as the company raised its full-year margin forecast to at least 65%.
On Holding shares fell as much as 22% on Tuesday, putting the stock on course for its worst session since going public, after second-quarter revenue missed analyst forecasts and growth in its biggest market, the Americas, slowed sharply.
The Roger Federer-backed sportswear company posted net sales of CHF850.3m for the three months through June, up 13.5% from a year earlier. On a constant-currency basis, revenue rose 21.6%. Analysts had expected CHF878.2m, according to consensus figures cited by the company.
Growth in the Americas, which accounts for more than half of total sales, decelerated to 13% on a constant-currency basis from 17.1% in the first quarter. The region generated CHF451.6m in revenue. The slowdown reflects a tougher consumer backdrop in the US, though On said it has continued to resist heavier discounting to drive volumes.
On's direct-to-consumer channel was the quarter's strongest segment. DTC sales jumped 26% to CHF388.4m, or 34.3% on a constant-currency basis. The channel represented a record 45.7% of second-quarter sales, up from 40.5% a year earlier.
Wholesale growth was more measured, rising 4.8% to CHF461.9m. Asia-Pacific sales surged 43.1% to CHF170.5m, and apparel sales climbed 47.7%.
Gross profit margin widened to 65.4% from 61.5% a year ago. Net income swung to CHF105m from a CHF40.9m loss in the same period last year.
On raised its full-year gross margin forecast to at least 65%, up from a prior target of around 64%. The company expects constant-currency sales growth in the low-20% range, which would put annual net sales between CHF3.47bn and CHF3.56bn at current exchange rates.
Management said it will keep focusing on full-price sales and premium positioning while deliberately managing wholesale volumes in more promotional markets.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.