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Roger Federer-backed shoemaker On drops 10% after earnings

Published 14/11/2023, 10:42 pm
© Reuters.
ONON
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(Updated - November 14, 2023 6:38 AM EST)

On Holding AG (ONON) reported a profit per share of CHF0.20 in the third quarter, showing a significant increase from CHF0.07 in the previous year.

The revenue for the reported period amounted to CHF480.5 million, surpassing the consensus estimate of CHF451 million.

On shares fell nearly 10% in response to the earnings release.

Martin Hoffmann, Co-CEO and CFO of On, said: “The third quarter has not only been the seventh consecutive record top-line quarter, but also our most successful quarter in history across numerous measures.”

“We are planning to add less additional wholesale doors in the future and to focus on our existing wholesale partners and our own DTC channels, E-com and own retail. With the increased outlook for the full year 2023 and our recently announced Dream On vision for 2026, we are heading into the holiday season with a lot of confidence and are very excited for the road ahead."

The has raised its full-year 2023 net sales guidance by CHF30 million, bringing it to CHF1.79 billion. This updated guidance exceeds the consensus estimate of CHF1.77 billion.

“All else equal, we would expect FY23E adj. EBITDA consensus to remain broadly unchanged at c.CHF 270mn,” analysts at Goldman Sachs wrote.

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