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HomeBusinessOn Holding Reports Strong Q2 Earnings, But Stock Drops 13 percent on...

On Holding Reports Strong Q2 Earnings, But Stock Drops 13 percent on Disappointing Guidance

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On Holding (NYSE:ONON), the footwear manufacturer endorsed by former professional tennis player Roger Federer, experienced a decline of more than 13% today in its stock price subsequent to the release of its Q2 results and guidance for the latter part of the year. Despite displaying robust overall expansion, the sales forecast for the latter half of the year fell short of expectations, partially due to the influence of a strengthening Swiss franc.
On Holding posted Q2 sales amounting to CHF 444.3 million, representing a substantial 52.3% surge compared to the previous year. The adjusted earnings per share (EPS) for this period were CHF 0.04, contrasting with CHF 0.14 recorded in the previous year.
For the entire year of 2023, On Holding now estimates net sales totaling CHF 1.76 billion, which implies a noteworthy year-over-year growth rate of 44%. However, the projected growth rate for the second half of the year is anticipated to be approximately 30%. This is somewhat below market expectations, as the consensus was for a full-year sales forecast of CHF 1.78 billion.

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