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On Holding reported second-quarter sales of CHF444.3 million, an increase of 52.3% from last year. Adjusted EPS was CHF0.04 vs CHF0.14 last year.
On Holding now expects 2023 net sales of CHF1.76 billion (CHF1 = $1.1415). This implies a year-over-year growth rate of 44% and a second-half-year growth rate of close to 30%. Consensus was for full-year sales guidance of CHF1.78B.
On Holding maintained its previous outlook on gross profit margin and adjusted EBITDA margin.
On Holding declined by as much as 17% after it published the results, but year-to-date shares remain higher by about 70%.
Commenting on the quarter, Telsey analysts said, “All in, the strong 2Q23 results point to a brand that continues to deliver exceptional growth, but given the strong stock price performance YTD, a larger guidance raise seemed baked into the stock and shares could be under pressure today.”
Stifel analysts think guidance was conservative.
“Considering brand momentum, strong execution, and an inventory position to support upside, we see potential for FY2H guidance to again prove conservative,” they wrote.
