ON Holding (NYSE:ONON) is a top-trending ticker this morning after the company reported that its revenue had jumped 28% in the second quarter versus the same period a year earlier. The Switzerland-based firm, which is also a breakout search term today, sells athletic footwear and other sports apparel. ONON stock is up 5% today.
On Holding’s Q2 Results
On’s revenue climbed 28% last quarter versus Q2 of 2023 to 567.7 million Swiss francs. Even more impressively, its EBITDA, excluding certain items, jumped 45% year-over-year to 90.8 million Swiss francs. And on the bottom line, its net income soared 834% YOY to 30,8 million Swiss francs.
However, despite the apparel supplier’s very impressive growth, it did not raise its full-year guidance. It continues to expect its revenue, excluding currency changes, to climb 30%, and it still predicts that its gross margin will be about 60%.
“Strong Momentum”
On’s brand has “strong momentum… across channels, regions and products,” and it has benefited from “recent positive feedback and coverage,” Co-CEO and CFO Martin Hoffmann said in a statement.
Co-founder and Executive Co-Chairman David Allemann noted that the company, in recent months, had announced a partnership with American actress and singer Zendaya and unveiled its “LightSpray technology.” LightSpray uses thermoplastic to eliminate the need for laces, tongues, and heel caps on footwear. By incorporating LightSpray, the firm can lower the weight of its running shoes by 100 grams.
After examining On’s factory last month, CNBC anchor Andrew Ross Sorkin proclaimed that “everyone will be wearing” its shoes that incorporate LightSpray technology “soon.”
ONON Stock: Upbeat Coverage Initiation
Last month, investment bank Raymond James started coverage of ONON stock with an “outperform” rating. The bank predicted that the firm’s “strong brand, increasing innovation, and global expansion (would) continue to drive positive momentum.” It placed a $46 price target on the shares.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
