The Investor
11 Aug 2026, 15:41
On Holding Stock Plunges 20% as Outlook Overshadows Strong Q2 Results
On Holding (NYSE: ONON) shares fell about 20% on Tuesday despite the athletic footwear company reporting strong second-quarter growth and improving profitability.
Q2 net sales rose 13.5% year-over-year to CHF 850.3 million, or 21.6% on a constant-currency basis. Direct-to-consumer sales climbed 26%, while adjusted EBITDA increased 23.5% to CHF 168.1 million. Gross margin also expanded sharply to 65.4% from 61.5%.
The sharp selloff appears primarily tied to the outlook. On expects full-year constant-currency sales growth only in the low-20% range and said it is deliberately managing wholesale sell-in during the second half to protect its premium positioning. The company expects sales of roughly CHF 3.47 billion to CHF 3.56 billion at current exchange rates.
The results themselves remained strong, particularly in Asia-Pacific, where sales jumped 43.1%, while apparel revenue increased 47.7%. However, the 20% stock decline suggests investors were positioned for stronger forward growth, making the relatively cautious sales outlook the key concern despite solid Q2 execution.
On Holding (NYSE: ONON) shares fell about 20% on Tuesday despite the athletic footwear company reporting strong second-quarter growth and improving profitability.
Q2 net sales rose 13.5% year-over-year to CHF 850.3 million, or 21.6% on a constant-currency basis. Direct-to-consumer sales climbed 26%, while adjusted EBITDA increased 23.5% to CHF 168.1 million. Gross margin also expanded sharply to 65.4% from 61.5%.
The sharp selloff appears primarily tied to the outlook. On expects full-year constant-currency sales growth only in the low-20% range and said it is deliberately managing wholesale sell-in during the second half to protect its premium positioning. The company expects sales of roughly CHF 3.47 billion to CHF 3.56 billion at current exchange rates.
The results themselves remained strong, particularly in Asia-Pacific, where sales jumped 43.1%, while apparel revenue increased 47.7%. However, the 20% stock decline suggests investors were positioned for stronger forward growth, making the relatively cautious sales outlook the key concern despite solid Q2 execution.
