Federer-backed On retains annual sales forecast after quarterly beat, shares fall
Adds analysts comments in paragraphs 6 & 9 and updates shares
By Ananya Mariam Rajesh
Aug 13 (Reuters) -On Holding ONON.N beat analysts' estimates for second-quarter revenue on Tuesday on strong demand for its shoes and apparel from customers looking for trendy products, but shares fellabout 3% as the company maintained its annual forecast.
The company cited low stock due to capacity constraints and supply challenges at its Atlanta distribution center, which is being automated.
"We have experienced shipping delays, but we also experienced out-of-stock situations towards our DTC channel ... while we posted a record quarter, it could have been even stronger if we would not have had those impacts," co-CEO and Chief Financial Officer Martin Hoffmann told Reuters.
The forecast reflects the company's expectation of continued disruption for the next few months, he said.
The Roger Federer-backed company maintained its 2024 net sales growth forecast of at least 30% in constant currency.
Telsey Advisory Group analyst Cristina Fernandez said the guidance would disappoint investors, "who have come to expect a beat and raise every quarter."
On's U.S.-listed shares have risen nearly 47% so far this year, as the company and Hoka-owner Deckers Outdoor DECK.N edge out sportswear giant Nike NKE.N for shelf and online space at retailers including Dick's Sporting Goods DKS.N and Foot Locker FL.N in the running shoe category.
On has signed a multi-year partnership with actress Zendaya and launched products in the running and trail categories, looking to tap into the trend of customers willing to splurge on comfortable and new products at full price even as they remain cautious about big-ticket purchases.
"In our view the brand's momentum remains robust and we believe the awareness they are gaining from their strategic wholesale expansion, the Olympics and their Zendaya partnership will continue to accelerate growth trends in second half," Truist Securities analyst Joseph Civello said in a note.
On, which is the official sponsor of the Swiss Olympic team and Poland's tennis Grand Slam champion Iga Swiatek, reported a nearly 28% jump in second-quarter sales to 567.7 million Swiss francs ($655 million), compared with LSEG estimates of 560.9 million Swiss francs.
Adjusted profit of 0.15 Swiss francs per share narrowly missed estimates of 0.16 Swiss francs.
($1 = 0.8664 Swiss francs)
Shares of major sportswear companies https://reut.rs/3AjIly9
Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
