On Holding (ONON) stock rose on Wednesday, rising 18% after the company’s third-quarter results beat expectations and raised its full-year outlook, with CEO Martin Hoffman saying sales momentum was strong heading into the crucial holiday quarter.
“We had an amazing quarter…strong, well above expectations…(which) gives us confidence going into the fourth quarter,” Hoffman told Yahoo Finance. “We are already seeing the results… in the first days of November… the momentum is very strong,” he added.
For fiscal year 2025, Aon expects net sales to rise by at least 34% year-on-year compared to previous expectations of a jump of at least 31%. In it Investor Day in 2023The company expects net sales to exceed US$4.44 billion by 2026, which means an annual growth rate of 26%. The company is way ahead of that, Hoffman said.
In the third quarter, On reported earnings per share of 0.43 Swiss francs, or $0.54, above the 0.27 Swiss francs, or $0.34, that investors were looking for, according to Bloomberg data. Revenue was 794.4 million Swiss francs, or $993 million, higher than the 767.5 million Swiss francs, or about $960 million, that the Street was looking for.
On also said it expects its margins to come in higher than previous expectations.
In the third quarter, the Asia-Pacific region led revenue growth, with sales doubling in the quarter when adjusted for currency fluctuations.
Hoffman said growth in the Asia-Pacific region was led by a consumer who skews “even younger” and seeks a “premium appeal” that differs from the mass market.
At the same time, he said the American consumer is looking at new categories like tennis shoes and training sneakers, adding that he is expanding the age groups he reaches, especially the “younger consumer” with Zendaya spokesmen, and “filling the space by being the most discerning segment out there.” Its sales in the Americas rose 21% during the quarter.
Read more: How can ‘shopping slow’ help you save money this holiday season?
When the report came out, On Holding stock fell along with the broader footwear space, falling about 35%. Rivals Nike (NKE), whose shares are down 16%, and Deckers Outdoor (DECK), whose shares are down 59%, have also seen shares decline this year.
Citi analyst Paul Lejuez said before the report that the stock’s decline could be partly attributed to “concerns about Nike’s comeback and what that means for On’s long-term growth trajectory.”
Lejuez believes Nike’s turnaround will take 12 to 18 months to show improvement.
Hoffman isn’t too worried about the competition either.
“We are truly charting our own path… (with) the vision to become the most recognizable global sportswear brand,” he said.
Ahead of the results, Cristina Fernandez of Telsey Advisory Group wrote in a note to clients, “We continue to see the brand strong with very good traffic into stores during our visits and low promotional activity across the market.” Its full price share is rising year over year and is here to stay, Hoffman said.
“We are one of the only brands that… only offers full price, and the momentum and growth we have seen has been absolutely amazing,” he said.
Innovation, like Cloudsurfer and Cloudsurfer Max, is what keeps customers willing to pay the price, even after prices were raised by tariffs in July.
Next year, it plans to introduce new sneakers, including the Cloud Runner and Cloud Monster, in addition to bringing its own machine-made shoes. Lite Spray sneakers To mass markets.
The company is also in the process of searching for a new financial director. Hoffman took on the role of sole CEO thereafter Co-CEO Mark Maurer He left earlier this year.
Brooke DiPalma is a Yahoo Finance reporter. Follow her on @XBrooke De Palma Or email her at bdipalma@yahoofinance.com
Click here for the latest retail stock news and events to better guide your investment strategy
The post On Holding stock soars 18% after company raises full-year outlook, cites ‘strong’ momentum into holidays first appeared on Investorempires.com.
