Why Swiss-Based Sportswear Brand On Holding Shares Are Falling Today
- 7 months ago
On Holding AG (NYSE:ONON) shares are trading lower despite delivering street-beating performance in Q3 while raising the FY23 revenue outlook.
The Switzerland-based footwear and sports apparel firm reported Q3 adjusted EPS of $0.226, beating the street view of $0.16.
Q3 sales of $543.746 million beat the analyst consensus of $515.37 million. The company's net sales increased 46.5% Y/Y on strength in direct-to-consumer sales channel and wholesale sales channel, among others.
Quarterly gross profit increased 53.5%, while gross profit margin increased to 59.9% from 57.1%.
On the flipside, adjusted EBITDA margin decreased to 16.9% from 17.2% in the quarter under review.
The company said it sees reduced incremental growth from new wholesale channel doors, starting with Q4, which will bear the initial impacts of the announced strategic wholesale door closures in the EMEA region.
The Q4 will also be impacted by early holiday shipments, resulting in a pull forward of Q4 volumes and a more challenging comparison period.
For FY23, On Holding raised its previous net sales outlook to CHF 1.79 billion from CHF 1.76 billion.
The Switzerland-based footwear and sports apparel firm reported Q3 adjusted EPS of $0.226, beating the street view of $0.16.
Q3 sales of $543.746 million beat the analyst consensus of $515.37 million. The company's net sales increased 46.5% Y/Y on strength in direct-to-consumer sales channel and wholesale sales channel, among others.
Quarterly gross profit increased 53.5%, while gross profit margin increased to 59.9% from 57.1%.
On the flipside, adjusted EBITDA margin decreased to 16.9% from 17.2% in the quarter under review.
The company said it sees reduced incremental growth from new wholesale channel doors, starting with Q4, which will bear the initial impacts of the announced strategic wholesale door closures in the EMEA region.
The Q4 will also be impacted by early holiday shipments, resulting in a pull forward of Q4 volumes and a more challenging comparison period.
For FY23, On Holding raised its previous net sales outlook to CHF 1.79 billion from CHF 1.76 billion.