mohd izzuan/iStock via Getty Images Shares of On Holding (NYSE:ONON) are stuck in a range for more than a year now, resulting from a combination of waning sales momentum and the disappearance of a strong beat-and-raise guidance policy in the last two quarters. YCharts However, the waning sales momentum was not due to the weaknesses in the underlying business and demand for On shoes, but intentional as the company reorganized its wholesale operations in some geographies and focused on profitable growth versu ...

This hot growth stock is just getting started.Growth stocks are soaring in the bull market, but new data about inflation put the brakes on the market's rise last week. Will inflation keep moving up? Will the Federal Reserve cut interest rates? Is a recession still a possibility?These kinds of questions keep economists on their toes, but smart investors zoom out and focus on the long term. Ten years from now, whether or not there was a recession in 2024 will be largely irrelevant. The economy should keep gro ...

In the latest trading session, On Holding (ONON) closed at $31.98, marking a -0.53% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.24%.Prior to today's trading, shares of the running-shoe and apparel company had gained 0.41% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.14% and lagged the S&P 500's gain o ...

Financial Data and Key Metrics Changes - The company reported significant revenue growth of 47% to CHF 1.79 billion in 2023, with a 55% increase on a constant currency basis, exceeding expectations [37][58] - Gross profit margin increased from 56% to 59.6%, and adjusted EBITDA margin rose from 13.5% to 15.5% [59][80] - The company achieved a record net income of CHF 79.6 million, up from CHF 57.7 million in the prior year, despite significant unrealized FX charges [82] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) share grew from 36.4% to 37.5%, with DTC sales accounting for 46.2% of net sales in Q4 2023, up from 40.7% in Q4 2022 [60][65] - Net sales from shoes grew by 20.4% in Q4, reaching CHF 425.7 million, with the Cloudmonster franchise being a significant contributor [77] - Apparel sales increased by 60.1% in Q4, with DTC channels seeing a 110% growth [75] Market Data and Key Metrics Changes - The Americas region achieved net sales of CHF 300.6 million in Q4, marking the strongest quarter in the region's history, with a constant currency growth of 29% [73] - EMEA net sales grew by 22.9% to CHF 112.5 million in Q4, with a constant currency growth of 26% [72] - APAC reached net sales of CHF 34 million in Q4, corresponding to a growth rate of 57.7%, with over 75% growth on a constant currency basis [74] Company Strategy and Development Direction - The company aims to open an additional 100 brand stores worldwide in the coming years, focusing on showcasing both footwear and apparel [52] - The strategy includes a strong emphasis on performance running products and expanding the apparel line, particularly in tennis and training [91][92] - The company is committed to maintaining a premium brand positioning while expanding its market share and brand awareness [54][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the strong demand for products, anticipating a constant currency growth rate of at least 30% for 2024 [101] - The company plans to continue investing in technology and retail expansion to enhance its direct channels and overall market presence [116] - Management highlighted the importance of balancing growth with profitability, aiming for an adjusted EBITDA margin of 16% to 16.5% in 2024 [102] Other Important Information - The company reported a positive cash flow of CHF 163 million, the highest in its history, and ended the year with a cash balance of CHF 495 million [60][86] - The company is focusing on optimizing its inventory and working capital position to support future growth [83][102] Q&A Session Summary Question: What is the revenue guidance for Q1 and the full year? - Management expects constant currency net sales growth of 26% for Q1, translating to reported Swiss Francs net sales of CHF 495 million, with a significantly increased DTC share [107] Question: What are the expectations for store openings in 2024? - The company plans to open approximately 17 to 19 retail locations in 2024, emphasizing the importance of location and size [112] Question: Can you elaborate on the assumptions for DTC and wholesale growth in 2024? - Management reiterated the commitment to a multi-channel strategy, expecting an increase in DTC share while also growing in wholesale channels [116]

Shares of shoe company On Holding (ONON -13.74%) crumbled on Tuesday after the company reported financial results for the fourth quarter of 2023. The company's numbers were in line with management's guidance but missed Wall Street's expectations. That's why On stock was down 14% as of 11 a.m. ET.A record year for OnOn's management provided guidance for sales, gross profit margin, and margin for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Back in the third quarter, mana ...

On Holding AG (NYSE:ONON) stock is plummeting today, after the footwear retailer's disappointing fourth-quarter results and net sales forecast. Down 13% at $29.24 at last glance, ONON is on the short sell restricted (SSR) list today. This bear gap has the equity dropping below its 20-day moving average, which provided close support this month, though long-term support at its 320-day moving average is still keeping a cap on losses. Since last March, ONON is up 42.5%. The stock is also holding on to a modest ...

Key PointsON Holdings had a solid quarter but missed estimates and guided weakly, sending shares to critical support.Analysts defend their targets and ratings, suggesting a rebound will start soon. Nike and Lululemon report soon and may have weak reports, but one market is pricing in the weakness while the other isn't. 5 stocks we like better than ONON Holding's NYSE: ONON stock price is down 15% following the Q4 results and presents a solid buying opportunity. The move is alarming and may impact the price ...

On Holding (ONON) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of $0.11. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -154.55%. A quarter ago, it was expected that this running-shoe and apparel company would post earnings of $0.16 per share when it actually produced earnings of $0.22, delivering a surprise of 37.50%.Over the last four quarters, the ...

ZURICH, Switzerland--(BUSINESS WIRE)--On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”) today announced its financial results for the fourth quarter and full year, and that it has filed its annual report on Form 20-F (the "Form 20-F") for the year ended December 31, 2023, with the U.S. Securities and Exchange Commission (the "SEC"). Martin Hoffmann, Co-CEO and CFO of On, said: “On our journey towards building the most premium global sportswear brand, 2023 was a ...

Market Presence and Sales - As of December 31, 2023, the company's products are available at approximately 10,000 retail stores across its direct markets[47]. - The footwear category, which includes over 70 styles, comprised a significant majority of the company's sales in 2023[57]. - For the year ended December 31, 2023, 64.9% of sales were to customers in the Americas, indicating a significant reliance on this market[64]. - The company currently operates 10 retail stores outside of China, with 5 in the Americas, 4 in EMEA, and 1 in APAC, in addition to 22 mall-based stores in China[105]. - The company plans to open additional retail stores, which will require significant capital expenditures and may not be immediately profitable, leading to initial losses[105]. Financial Performance - The company generated net income of CHF 79.6 million and CHF 57.7 million for the years ended December 31, 2023 and 2022, respectively, but incurred a net loss of CHF 170.2 million for the year ended December 31, 2021[63]. - The company’s financial condition and results of operations may be adversely affected by fluctuations in consumer spending and economic conditions in key markets[81]. - Economic downturns and changes in consumer spending patterns could adversely affect the company's sales and profitability[75]. - The financial health of retail partners is critical, as economic uncertainty may lead to reduced orders and negatively impact sales[80]. Growth Strategies and Market Expansion - The company aims to expand and diversify its wholesale channel and accelerate partnerships with digital retailers to enhance customer experience[58]. - The company may need to change its growth strategies if current plans do not yield successful results, which could adversely affect its financial condition[56]. - The company plans to expand its distribution network and sales into new locations outside of the United States and the EU, with distribution agreements with 22 partners across 86 markets in 2023[129]. - The company may encounter challenges in expanding into new markets due to limited brand recognition and increased operational costs[66]. - The company may face challenges in finding suitable partners for expansion, which could hinder its growth strategy and impact net sales[129]. Product Development and Innovation - The company plans to continue investing in research and development to enhance technical innovation and environmentally sustainable products, which are crucial for maintaining consumer interest[70]. - The company has systematically redesigned key franchises, such as the Cloud and Cloudswift, over the last two years to improve product offerings[71]. - The company’s future growth largely depends on customers continuing to demand technical superiority from its premium products[61]. - If the company fails to innovate and meet consumer expectations, it risks losing customers and facing increased pricing pressures[70]. Marketing and Brand Management - The company relies on grassroots marketing efforts and partnerships with premium brand partners and athletes to promote its brand[51]. - The company’s marketing strategies, particularly through social media, are vital for customer acquisition and brand awareness[68]. - The company anticipates that maintaining and enhancing its premium brand may require substantial investments in areas such as product design and marketing[45]. Supply Chain and Operational Risks - The company faces risks related to the compliance of its independent contract manufacturers with socially and environmentally responsible business practices[49]. - The company relies on third-party suppliers for fabrics and components, with less than 25 manufacturing suppliers producing all products in 2023[124]. - The COVID-19 pandemic has caused disruptions in supply chains and manufacturing, affecting operations and leading to delays in expanding the footwear supplier base beyond Vietnam[90]. - Supply chain disruptions due to geopolitical conflicts, such as the Russia-Ukraine conflict, could negatively impact the company's business and operating results[110]. - The company faces risks associated with long-term leases for retail and distribution spaces, which could impact growth if locations become unattractive[108]. Competition and Market Challenges - The company faces intense competition in the footwear, apparel, and accessories market, which may pressure pricing and impact market share[76]. - The company is vulnerable to changes in consumer preferences that could harm its sales and profitability due to its concentration on a single product category[57]. - The company has experienced a decline in consumer purchases of discretionary items due to economic downturns, with rising inflation and increased interest rates affecting disposable income[82]. Environmental and Social Governance (ESG) - The company is committed to CO2 reduction targets approved by the Science Based Targets initiative (SBTi), and failure to achieve these targets could result in reputational harm[141]. - The company acknowledges the increasing scrutiny from investors and customers regarding its environmental, social, and governance (ESG) practices, which could affect its reputation and market position[142]. - The company is focused on eliminating petroleum-based materials and increasing the use of recycled and sustainable materials, such as the Cloudneo shoe made with over 50% bio-based material[128]. Cybersecurity and Data Privacy - The company faces significant risks related to cybersecurity incidents, which have increased in frequency and sophistication, potentially impacting operations and financial results[170]. - Cybersecurity threats could lead to unauthorized access to sensitive information, resulting in reputational damage and potential legal liabilities[176]. - The company has implemented various data security measures, including encryption protocols and regular audits, to mitigate risks associated with data breaches[168]. - The evolving regulatory landscape may lead to increased compliance costs and operational changes, impacting overall business strategy[180]. Legal and Regulatory Compliance - The company operates under various legal and regulatory requirements that could expose it to significant penalties and reputational harm[220]. - The company is subject to strict obligations under the GDPR, which could result in fines of up to 4% of global annual net sales or €20 million for violations[182]. - The company may face increased compliance costs if it loses its foreign private issuer status, which could also complicate its corporate governance practices[227]. Financial and Tax Considerations - The standard combined corporate income tax rate in Zurich for 2023 is approximately 19.7%[204]. - The OECD's Base Erosion and Profit Shifting (BEPS) Pillar Two rules impose a global minimum tax rate of 15%[205]. - The Inflation Reduction Act in the U.S. introduces a 15% corporate alternative minimum tax on corporations with average annual adjusted financial statement income exceeding USD 1.0 billion[208]. - The company is subject to tax laws in multiple jurisdictions, and changes in these laws could result in additional tax liabilities or increased volatility in the effective tax rate[202]. Shareholder and Corporate Governance - The extended founder team holds approximately 59.2% of total combined voting power of the outstanding shares as of December 31, 2023[224]. - The dual class structure may limit the ability of shareholders to influence corporate matters, including director elections and mergers[224]. - The company does not intend to pay any cash dividends in the foreseeable future, relying on share price appreciation for returns[232]. - Future dividend payments will be decided by the board of directors based on business prospects, cash requirements, financial performance, and new product development, subject to shareholder approval and Swiss law limitations[233].