On Holding

On Holding announced its Q2 2024 results, with key highlights as follows:

- Revenue reached CHF 567.7 million, marking a 27.8% year-over-year increase.

- Non-GAAP EPS increased by 250% to CHF 0.14.

- Despite these gains, the stock dropped by 10.19% in pre-market trading.

On a constant currency basis, revenue grew by 29.4%, and the gross profit margin increased by 0.4 percentage points to 59.9%. Adjusted EBITDA rose by 44.7% to CHF 90.8 million.

By segment, footwear sales increased by 28.8%, apparel by 43.1%, and accessories by 36.3%. In terms of distribution channels, direct-to-consumer (DTC) sales grew by 33.1%, while wholesale sales increased by 19.8%.

The management maintained its guidance for a full-year constant currency revenue growth rate of over 30% and projected a gross profit margin around 60%. Additionally, they emphasized plans to enhance automation in their U.S. warehouses over the coming months.