On Holding AG (NYSE:ONON) shares are trading higher on Tuesday.

The company reported adjusted earnings per share of 15 cents, missing the analyst consensus of 16 cents. The company reported quarterly sales of $627.683 million, beating the street view of $561.038 million.

In the second quarter, gross profit margin reached 59.9%, up from 59.5% in the prior year period.

The company's increased profitability is further reflected in the significant expansion in net income and adjusted EBITDA compared to the same period in the prior year.

"Over the past months, we have launched important long-term initiatives such as our multi-year partnership with Zendaya, groundbreaking innovations like the LightSpray technology and the opening of our Paris store, our largest own retail location yet," said David Allemann, Co-Founder and Executive Co-Chairman.

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Quarterly adjusted EBITDA margin increased to 16% from 14.1% in the quarter under review.

Cash and cash equivalents increased by 32%, rising to CHF 652.4 million from CHF 494.6 million. Additionally, net working capital grew by 14.3%, reaching CHF 567.1 million, up from CHF 496.2 million.

Outlook: On is reiterating its full-year expectation of at least 30% net sales growth on a constant currency basis.

Considering the recent strength of the Swiss Franc and assuming spot rates persist at current levels for the remainder of the year, this implies reported net sales of at least CHF 2.26 billion in 2024.

The company expects to achieve a gross profit margin of around 60% and an adjusted EBITDA margin of 16.0% – 16.5%.

Price Action: ONON shares are trading higher by 6.90% to $42.29 at last check Tuesday.

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