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On Holding shares slip after revenue miss as margins widen
The quarter showed revenue growth of 13.5% reported, or 21.6% on a constant-currency basis, even as wholesale and FX conversion pressured the top line.
On Holding shares fell after the company reported a revenue miss, which MarketBeat Ratings tied to factors including its wholesale strategy and foreign exchange conversion. The analysis noted the market may have set a high bar for the premium footwear brand, with one-offs also in play.
The same source said margins improved despite the sales shortfall, highlighting that On’s inventory discipline and channel focus support higher full-price selling and stronger profitability. It characterized the revenue miss as linked less to weakness in wholesale demand and more to how the company is executing that strategy.
On Holding’s quarter included growth of 13.5% as reported for Q2, and 21.6% on a foreign-exchange-neutral, constant-currency basis. MarketBeat Ratings said growth was led by the higher-margin direct-to-consumer business, which rose 26% reported and 34.3% FXN, while wholesale grew 12.7% FXN.
MarketBeat Ratings also pointed to product and regional strength, with Asia-Pacific up more than 43% on a reported basis. It added that the company widened gross margin by about 390 basis points and that analysts kept a Moderate Buy consensus, even as the near-term guidance faced questions.