Swiss Shoe Maker On Holding's Stock Jumps on Strong Sales, Outlook Lift
Shares of On Holding (ONON) rose on Tuesday after the Swiss sneaker maker reported better first-quarter revenue than analysts had expected and lifted its full-year sales outlook.
The company reported adjusted earnings per share of 0.21 Swiss francs ($0.25) on revenue of CHF726.6 million ($863.5 million). Analysts had expected CHF0.21 and CHF684 million ($812.9 million), respectively.
On co-CEO and CFO Martin Hoffmann, who will become sole CEO on July 1, said the company's "commitment to bold innovation, operational excellence, and elevated consumer experiences" would help it gain market share amid "the higher levels of planning uncertainty in today's market environment."
The shoe manufacturer said it now expects full-year sales to grow by at least 28% on a constant-currency basis rather than 27% previously, although it trimmed the low end of its adjusted EBITDA margin outlook to 16.5% from 17.0%.
"On acknowledges that recent global trade policy shifts have introduced higher levels of planning uncertainty, including the potential for increased customs and freight expenses, general volatility within the global supply chain, as well as the material depreciation of all key operating currencies against the Swiss Franc," the company said.
On Holding shares were up 5% soon after Tuesday's report. They entered the day down about 6% since the start of this year.
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