On Running Stock Leaps 18.28% On Earnings Beat

On Holding ( ONON ), the parent company of On Running, has reported earnings of 36 cents per share, more than doubling from the 17 cents reported last year. Revenue jumped nearly 20% to a record $561 million, although sales growth slowed for the fifth quarter in a row. FactSet analysts expected adjusted earnings to tick down 2 cents to 15 cents per share. On's direct-to-consumer sales increased 48.7% year-over-year on a constant currency basis, making up 37.5% of On's total net sales.

On maintained its outlook of at least 30% net sales growth for the year and expects to achieve a gross profit margin of around 60% for the year. FactSet predicts 2024 an 87.5% earnings increase, to 75 cents per share, on 23% revenue growth to $2.511 billion.


On Holdings ( ONON ) reports first quarter 2024 results, with On surpassing CHF 500 million in a single quarter for the first time in its history. Total net sales reached CHF 508.2 million, a growth of 20.9% year-over-year and by 29.2% on a constant currency basis. The significant increase in DTC net sales, which now make up 37.5% of On's total net sales, and efficient inventory management support On's further expansion of its premium gross profit margin to 59.7%.

The continued high demand for the On brand provides further confidence in the stated goals for 2024 and beyond. On reiterates its full year expectation of at least 30% growth in net sales on a constant currency basis, which translates to reported net sales of at least CHF 2.29 billion at current spot rates.

Technical Outlook
On Holdings shares ( ONON ) closed up 18.28% on Tuesday's market trading which is moderately overbought with a Relative Strength Index (RSI) of 63. The stock has concurrently being in consolidation zones but has managed a 34.6% gain for the year through Tuesday's close.