On Holding (NYSE:ONON) shares skyrocketed by nearly 14% today after the Swiss sportswear products provider announced bumper first-quarter results and reaffirmed its full-year outlook.
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ONON’s Bumper Q1 Numbers
During the quarter, On’s revenue surged by 20.9% year-over-year to a record CHF 508.2 million. Additionally, its EPS more than doubled to CHF 0.33. This was the first-ever quarter of CHF 500M+ in revenue for the company.
This growth was driven by momentum in On’s DTC (direct-to-consumer) channel, in which net sales rose by 39% to CHF 190.5 million. Similarly, its net sales through Wholesale channels ticked higher by 12.2% to CHF 317.7 million. Importantly, the company clocked higher sales across its Europe, Middle East and Africa (EMEA), Americas, and Asia-Pacific geographies. These sales gains also helped the company expand its gross margin to 59.7% from 58.3%.
But There’s More
But there’s more. Hellen Obiri, the winner of the Boston Marathon, crossed the finish line wearing ONON’s running shoes, adding further momentum to the company’s athletic performance products. For the full year, On plans to grow its top line by at least 30%, which points to an annual top line of at least CHF 2.29 billion for the company. Adjusted EBITDA margin for the year is seen hovering in the range of 16%-16.5%.
What Is ONON Stock’s Price Forecast?
Today’s price gains further add to the nearly 20% jump in On’s share price over the past six months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average ONON price target of $36.72. However, analysts’ views on ONON stock could see a revision following today’s earnings report.
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