The stock of On Holding (ONON) is up 10% on Aug. 12 after the Swiss sneaker maker reported that its sales rose 32% year-over-year in the second quarter.
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On Holding, whose sneakers are popular with professional athletes and runners, also raised its full-year revenue guidance despite grappling with new tariffs on imports from Vietnam, where the bulk of its products are manufactured.
On Holding reported a loss per share of nine Swiss francs (US$11.15). That’s short of the consensus call for a profit of 19 Swiss francs. Management said the loss was primarily due to foreign exchange fluctuations between the U.S. dollar and Swiss franc.
Revenue in the quarter came in at 749 million francs, which was ahead of the 705 million francs expected among analysts. Despite the mixed results, On Holding’s sales were up more than 30% from a year earlier, sending the stock higher.
Strong Outlook
On Holding, which has taken market share from rival Nike (NKE) in recent years, said it now expects full-year sales of 2.91 billion Swiss francs (US$3.58 billion), up from a previous outlook of 2.86 billion francs. The new guidance is in line with Wall Street expectations of 2.92 billion Swiss francs.
The company also raised its gross margin guidance to a range of 60.5% to 61%, compared with its previous outlook of 60% to 60.5%. On Holding, which makes 90% of its goods in Vietnam, raised prices in July of this year to offset the higher costs caused by tariffs.
On Holding has grown more than 30% in nearly every quarter since 2023. ONON stock is down 9% so far in 2025.
Is ONON Stock a Buy?
The stock of On Holding has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 18 Buy and two Hold recommendations issued in the last three months. The average ONON price target of $66.11 implies 32.88% upside from current levels. These ratings could change after the company’s latest financial results.
