Footwear and apparel products provider On Holding AG (NYSE:ONON) has delivered a healthy set of first-quarter numbers with revenue surging by a massive 78.3% year-over-year to CHF420.2 million.
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Additionally, with improving supply chains and normalizing air freight usage trends the company was able to clock gross margins of 58.3% as compared to 51.8% a year ago. These trends also helped the company deliver an EPS (Class A) of CHF0.15 versus CHF 0.05 a year ago.
Moreover, while ONON is seeing robust growth across all of its major geographic regions, net sales in the direct-to-consumer and wholesale channels also rose by 64.3% and 86% respectively during this period.
Looking ahead, for the fiscal year ending on December 31, 2023, the company expects net sales to reach at least CHF1.74 billion. Gross profit for the year is anticipated at CHF1 billion.
Overall, the Street has a $33.09 consensus price target on ONON alongside a Moderate Buy consensus rating. Shares of the company have surged nearly 96% so far this year while short interest in the stock remains elevated at nearly 8% at present.
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