The Swiss sportswear brand reported CHF 850.3 million in net sales, below analyst expectations of CHF 878.16 million.
On Holding posted second-quarter net sales of CHF 850.3 million, falling short of the CHF 878.16 million analysts anticipated. The miss triggered a 22% drop in its stock, pushing shares to a nearly two-year low.
Analysts had expected stronger growth, particularly in the Americas, where revenue rose just 13% on a constant-currency basis, down from 17% in Q1. Wholesale sales growth slowed sharply to 4.8%, while direct-to-consumer revenue surged 26%, reaching 45.7% of total sales.
Net income improved to CHF 105.0 million from a CHF 40.9 million loss a year earlier, with gross margins expanding to 65.4%. Asia-Pacific led regional growth, climbing 43.1% year-over-year.