Roger Federer’s On Holdings rallied, putting front-foot forward despite supply issues

Shares in On Holding AG (NYSE:ONON), the sports shoe company made famous by brand ambassador and shareholder Roger Federer, were on the front foot in Wednesday’s early deals after reporting financial results.

Sale for the second quarter totalled 567.7 million Swiss Francs (CHF), and was up some 27.8% compared to the same trading period last year and was ahead of market consensus of CHF 561.6 million.

Its direct-to-consumer (DTC) operation disappointed compared to analyst forecasts, with revenue amounting to CHF 209.4 million (versus a CHF 222.2 million) but wholesaling ‘outperformed’ at CHF 358.2 million (versus CHF 339 million).

The company pointed to tight stock volumes as a drag on its sales performance, especially in DTC.

Earnings (adjusted EBITDA) rose 45% to CHF 90.8 million, compared to a forecast of CHF 85.9 million, though gross profit margin was slightly short of analyst expectations pitched at 60.1%.

On kept an upbeat guidance forecast, but did not upgrade. It currently estimates it will increase net sales by at least 30% this year, which would take it to CHF 2.26 billion. Whilst it said it expected gross profit margin to reach 60%.

In New York, On Holdings shares pushed around 4% higher to $41.12 – despite beginning pre-market trade on the back foot.

Roger Federer’s footwear brand is up nearly 50% in 2024, having begun the year priced at around $26 per share.