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On Holding stock slides to multi-year lows as guidance is cut
On insiders bought shares after the company missed Q2 revenue estimates and adjusted its full-year sales guidance, even as gross margin rose to 65.4% and regional growth held up.
On Holding shares have fallen to new lows in about 12 years, driven by intensifying competition in athletic footwear and apparel, according to Yahoo Finance. The article also notes that On has a forward P/E of 23.38, which is 46% higher than the sector median of 15.99.
Yahoo Finance reports that CEO Caspar Coppetti and co-founder Olivier Bernhard each bought 65,000 shares on August 14. The purchases came shortly after the company missed Q2 revenue estimates and cut full-year sales guidance.
In its Q2 update, On Holding revenue grew 22% at constant currency, but the pace decelerated by about 480 basis points from the prior quarter, with wholesale growth at 12.7%. Management attributed the wholesale slowdown largely to actions in the Americas, where it held back shipments to retailers to avoid discounting.
Profitability improved despite slower growth, with gross margin rising to 65.4% (up 390 basis points year over year) and the adjusted EBITDA margin expanding 160 basis points to 19.8%, Yahoo Finance writes. The company said it avoided building inventory at retail partners to protect full price positioning, plans to launch a new shoe this fall, and flagged that tariff refunds expected later this year are not included in current numbers.