US Markets
Sneaker Maker On Holding First-Quarter Results Top Street Views
On Holding (ONON) reported better-than-expected first-quarter results on Tuesday, while the Swiss sneaker maker reiterated its full-year sales growth outlook on a constant-currency basis.The company posted adjusted earnings of 0.37 Swiss francs ($0.47) per class A share, up from 0.21 francs a year earlier, topping the FactSet-polled consensus of 0.27 francs. Sales climbed 15% to 831.9 million francs, ahead of Street's view for 818.5 million francs.On's New York Stock Exchange-listed shares rose 3.5% in the most recent premarket activity.On continues to project sales to grow by at least 23% year over year for 2026 on a constant-currency basis, implying a reported figure of 3.51 billion francs. It previously saw reported sales at 3.44 billion francs, while the current consensus on FactSet is for 3.54 billion francs.Gross profit margin is expected to be at least 64.5% for the current year, up from the prior forecast of 63%. The guidance continues to incorporate a 20% incremental tariff rate on products imported to the US from Vietnam and excludes any potential tariff refunds.In February, the US Supreme Court invalidated President Donald Trump's reciprocal tariffs imposed under the International Emergency Economic Powers Act. Following that decision, Trump announced a 10% global tariff, which he later said would rise to 15%. A US trade court recently ruled that Trump's 10% global tariffs are not justified under a 1970s trade law.Shoe revenue advanced 12% to 763.7 million francs in the first quarter, while apparel and accessories jumped 45% and 71%, respectively. Net sales in the Americas gained 3.1% to 450.7 million francs. Sales in Europe, the Middle East, and Africa inclined 23%, while Asia-Pacific soared 44%.Sales in the direct-to-consumer channel rose 16% to 322.3 million francs, while the wholesale channel saw growth of 13% to 509.6 million francs."The results we present today - highlighted by record net sales and a gross profit margin of 64.2% - demonstrates our unique ability to scale rapidly while expanding our profitability," outgoing Chief Executive Martin Hoffmann said in a statement. "I am incredibly proud to hand over at a time when On is stronger than ever, with clear momentum, an extraordinary team and an exciting future ahead."Earlier this year, On appointed co-founders David Allemann and Caspar Coppetti as co-CEOs, effective May 1. Hoffmann will remain as an advisor to the company through March 2027.
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