On Holding's Stock Drops 9% After Mixed Q2 Earnings, CHF 567.7M Revenue

On Holding AG reported its second quarter 2024 earnings, revealing mixed results that led to a decline in its stock price. The company posted a revenue of CHF 567.7 million, surpassing the estimated CHF 562.7 million and marking a 27.8% year-over-year increase. However, earnings per share (EPS) fell short at CHF 0.14 compared to the expected CHF 0.16. The gross margin was slightly below expectations at 59.9%, against an estimated 60.1%. Adjusted EBITDA increased by 44.7%. EPS for Class A shares rose to CHF 0.10 from CHF 0.01. Despite these mixed profitability metrics, On Holding maintained its full-year 2024 guidance, forecasting net sales growth of at least 30% on a constant currency basis, with a revenue target of CHF 2.26 billion. The company's stock fell by approximately 9% in response to the earnings report, as investors reacted to the earnings miss despite the positive revenue growth.