Core Insights - On Holding AG reported a net sales increase of 32% year-over-year, reaching 749 million Swiss francs, with a fixed exchange rate growth of 38.2% [1] Sales Channels - Direct-to-consumer (DTC) sales increased by 47.2% year-over-year, with a fixed exchange rate growth of 54.3% [1] - Wholesale sales grew by 23.1% year-over-year, with a fixed exchange rate growth of 28.8% [1] Regional Performance - Net sales in Europe, the Middle East, and Africa grew by 46.1% at fixed exchange rates [1] - Net sales in the Americas increased by 23.6% at fixed exchange rates [1] - Net sales in the Asia-Pacific region surged by 110.9% at fixed exchange rates [1] Product Development - The company enhanced its product offerings in running, tennis, and trail categories, strengthening its premium differentiation in lifestyle and performance crossover segments [1]

Core Insights - ON Holdings has demonstrated strong Q2 results and an optimistic growth trajectory, leveraging its technology and brand strength while capitalizing on competitors' weaknesses [1][7] - The stock price has rebounded significantly, moving away from previous lows and showing bullish trends supported by institutional and analyst activity [2][4] Financial Performance - ON Holdings reported a 32% revenue growth driven by new products and a strong direct-to-consumer (DTC) segment, which saw a 47.2% increase [7][8] - The company achieved a 220-basis-point improvement in adjusted EBITDA margin, reflecting a 50% increase in adjusted EBITDA [9] Guidance and Forecast - The company raised its full-year guidance, projecting growth to be approximately 300 basis points higher than previous estimates, indicating strong profitability [10] - Analysts forecast a 12-month stock price target of $56.84, suggesting a potential upside of 10.53% from the current price [7] Market Trends - The stock is currently in an uptrend, with a notable increase in trading volume indicating rising demand [4][6] - Institutional and analyst sentiment has improved, with several upgrades to "Buy" or higher ratings leading to increased price targets [3][2] Long-term Outlook - ON Holdings is expected to maintain a high double-digit compound annual growth rate (CAGR) through the end of the decade, supporting ongoing positive trends in stock performance [11] - The company's balance sheet remains strong, with no significant long-term debt and total liabilities at approximately 1.35 times the cash position [12]

Group 1 - Kangji Medical (09997) resumed trading with a nearly 1% increase, announcing a privatization agreement with Knight Bidco Limited, which will make Kangji a wholly-owned subsidiary and delist from the Hong Kong Stock Exchange after completion [1] - Tencent Music (01698) opened high with over a 15% increase, reporting a 30% year-on-year increase in adjusted net profit for Q2 ending June 30, 2025, driven by high-quality growth in its online music business [1] - Mingyuan Cloud (00909) opened over 2% higher, announcing a cash acquisition of 100% equity in ASIOT Co., Ltd. for 700 million yen by its subsidiary MytePro Japan [1] Group 2 - Yuedu Group (00772) surged over 15%, reporting a 68.5% year-on-year increase in net profit for the first half of the year, with strong performance in IP for premium films and animations, and significant growth in the emerging short drama sector [2] - Minmetals Resources (01208) rose over 9%, with net profit increasing 15 times year-on-year, attributed to higher copper production and rising prices of copper, gold, silver, and zinc [2] - Beihai Kangcheng-B (01228) increased over 31%, announcing a strategic cooperation agreement with Baiyang Pharmaceutical for exclusive commercial services in promoting several products in mainland China, Hong Kong, and Macau [2] Group 3 - Zhonghui Biotech-B (02627) surged over 25%, as its vaccine product was included in the preliminary review list of the national commercial health insurance innovative drug catalog [2] - Gilead Sciences-B (01672) rose over 5%, announcing promising efficacy results for its candidate drug ASC47 in combination with teriparatide for obesity treatment in diet-induced obesity mouse studies [3] - Dongying Travel (06882) fell over 9%, issuing a profit warning with expected net profit of approximately 6 million HKD for the first half of 2025, down about 82% from 34 million HKD in the same period last year [3] Group 4 - Kodak (KODK.US) dropped 19.91% after reporting a shift from profit to loss in Q2, raising concerns about its ability to execute critical financing measures [4] - Niu Technologies (NIU.US) rose 11.69%, reporting a turnaround to profitability in Q2 and projecting Q3 revenue between 1.433 billion to 1.638 billion CNY, a year-on-year increase of 40% to 60% [4] - Huya (HUYA.US) increased by 4.53%, preparing to release its financial report, with a strong growth trajectory in gaming-related services [4] Group 5 - ON Running (ONON.US) rose 8.95%, reporting a 32% year-on-year increase in Q2 sales and projecting annual net sales of at least 2.91 billion Swiss francs, exceeding previous expectations [6] - Micron Technology (MU.US) increased by 3.26%, significantly raising its Q4 fiscal year 2025 revenue guidance to between 11.1 billion to 11.3 billion USD, with gross margin guidance improved to 44% to 45% [6]

Group 1 - On Holdings AG (NYSE:ONON) reported better-than-expected second-quarter results, achieving record sales and raising its full-year revenue forecast despite challenges from Vietnam tariffs [1] - The stock price increased by 8.3% to $49.57, with an intraday high of $52.20, marking the third consecutive post-earnings price increase [1][2] - Year-to-date, ON Holdings stock has decreased by 10.2% [2] Group 2 - Analysts are predominantly bullish on the stock, with 19 out of 22 analysts rating it as "buy" or "strong buy," and a 12-month consensus price target of $66.16, indicating a 33.9% upside potential from current levels [3] - Options trading activity has surged, with 33,000 calls and 37,000 puts exchanged, which is six times the average daily options volume [4] - Short interest has decreased recently but still represents 9% of the stock's available float, with a buyback period of over four days at the average trading pace [5]

Core Viewpoint - Swiss sports brand On Running (ONON.US) saw its stock rise over 8.8% to $49.75 following strong second-quarter sales results that exceeded analyst expectations [1] Financial Performance - On Running reported a 32% year-over-year increase in sales for the second quarter, reaching 749.2 million Swiss francs, surpassing the average analyst estimate of 705.3 million Swiss francs [1] - The company expects full-year net sales to be at least 2.91 billion Swiss francs, an increase from the previous forecast of 2.86 billion Swiss francs [1] - Adjusted EBITDA margin is projected to be between 17% and 17.5%, up from the prior expectation of 16.5% to 17.5% [1]

Financial Performance - On Holding shares surged due to better-than-expected results [1] - The company boosted its guidance [1] Sales Performance - Booming direct-to-consumer (DTC) sales contributed to the positive results [1]

Financial Data and Key Metrics Changes - The company reported net sales of CHF 749.2 million, representing a 38% increase on a constant currency basis and a 32% increase on a reported basis year-over-year [6][32] - The gross profit margin expanded to 61.5%, an increase of 160 basis points year-over-year, while the adjusted EBITDA margin reached 18.2%, up 220 basis points year-over-year [7][41] - Adjusted EBITDA was CHF 136.1 million, reflecting strong operational performance and top-line growth [43] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) sales reached CHF 308.3 million, up 54.3% year-over-year at constant currency, elevating the D2C mix to 41.1% of total sales [32] - The apparel business saw net sales grow by 75.5% at constant exchange rates, reaching CHF 36.7 million, indicating strong consumer engagement [40] - Net sales from shoes grew by 36% at constant exchange rates, with notable demand in both performance and lifestyle categories [39] Market Data and Key Metrics Changes - EMEA region net sales grew by 46.1% year-over-year at constant currency, reaching CHF 197.8 million, marking the strongest growth in two years [35] - The Americas experienced a 23.6% increase in net sales at constant currency, totaling CHF 432.3 million [36] - The APAC region delivered triple-digit growth of 110.9% year-over-year, with net sales reaching €119.2 million [38] Company Strategy and Development Direction - The company aims to build resilience in its product portfolio and expand its presence in multiple sports, transitioning from running to include trail, outdoor, tennis, and training [12][20] - The strategic focus includes enhancing brand perception and expanding the apparel line, with plans for high-profile product launches and collaborations [11][29] - The company is committed to innovation in manufacturing, exemplified by the launch of the Light Spray factory, which aims to streamline production processes [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and growth potential, citing strong performance across all regions and product categories [25][50] - The company anticipates continued strong demand despite potential macroeconomic challenges, with an increased guidance for net sales growth to at least 31% year-over-year [50][51] - Management emphasized the importance of maintaining premium positioning and investing in long-term growth initiatives [52][53] Other Important Information - The company has been recognized as one of the world's 50 most innovative companies by Fast Company, highlighting its commitment to technological advancements [18] - The company ended the quarter with a cash balance of CHF 846.6 million, down from CHF 871.8 million, primarily due to foreign exchange impacts [47] Q&A Session Summary Question: What gives confidence to raise constant currency sales growth guidance despite potential tariff impacts? - Management highlighted strong brand momentum and growth across all regions and product categories, with July being the strongest month in the brand's history [57][58] Question: Can you discuss the expected revenue growth trends in wholesale and D2C for the second half? - Management noted that while they expect some deceleration, the focus remains on durable, high-quality growth, with strong performance in D2C channels [68][70] Question: What are the levers for additional margin expansion given current performance? - Management indicated opportunities for increased gross profit margin through a higher D2C mix, economies of scale, and continued investment in brand-building initiatives [72][74] Question: Can you elaborate on the impact of new product launches on future momentum? - Management expressed excitement about the ongoing development of franchises and the introduction of new products, which are expected to sustain momentum into 2026 [79][83] Question: How is the company managing working capital and inventory levels? - Management reported improvements in demand and supply planning, allowing for lower inventory levels while meeting consumer demand effectively [85][87]

Financial Data and Key Metrics Changes - The company reported net sales of CHF 749.2 million, representing a 32% year-over-year increase on a reported basis and a 38.2% increase on a constant currency basis [31][29] - Adjusted EBITDA reached CHF 136.1 million, translating to an adjusted EBITDA margin of 18.2%, up 220 basis points year-over-year [41][30] - Gross profit margin increased by 160 basis points year-over-year to 61.5%, driven by a higher D2C share and lower freight expenses [39][40] Business Line Data and Key Metrics Changes - The Direct-to-Consumer (D2C) channel saw net sales of CHF 308.3 million, up 54.3% year-over-year at constant currency [31] - The apparel business delivered net sales growth of 75.5% at constant exchange rates, reaching CHF 36.7 million [38] - Net sales from shoes grew 36% at constant exchange rates, with strong demand across both Performance and Lifestyle portfolios [37] Market Data and Key Metrics Changes - EMEA region net sales grew by 46.1% year-over-year on a constant currency basis, reaching CHF 197.8 million [34] - The Americas saw net sales growth of 23.6% on a constant currency basis, totaling CHF 432.3 million [35] - The APAC region experienced triple-digit growth, with net sales up 110.9% year-over-year, translating to CHF 119.2 million [36] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on innovation, quality, and customer experience [50][51] - A strategic emphasis on building a balanced portfolio with nine distinct footwear franchises, each contributing over 5% to the top line [9][80] - The company is expanding its apparel business and enhancing its relevance as a full sportswear brand, with plans for new product launches and collaborations [10][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the ability to navigate macroeconomic challenges, including tariffs [64][62] - The company anticipates continued strong performance in Q3 and has raised its full-year guidance for net sales growth to at least 31% year-over-year [48][47] - Management highlighted the importance of maintaining a premium brand position and investing in long-term growth initiatives [50][51] Other Important Information - The company opened its first retail store in Singapore, which achieved high sales during its opening weekend [27] - The launch of the LightSpray factory in Zurich represents a significant innovation in manufacturing processes [18] - The company has a strong cash position of CHF 846.6 million, despite a decrease from the previous quarter [44] Q&A Session Summary Question: What gives you the confidence to raise your constant currency sales growth guidance for the year? - Management cited strong brand momentum globally, with significant growth across all regions and product categories, and a strong order book for Q3 [56][58] Question: Can you talk about the second half constant currency revenue growth and trends in wholesale and DTC? - Management emphasized the importance of durable, high-quality growth and indicated that they are well-positioned for continued momentum in both channels [68][70] Question: What are the levers for additional margin expansion given current performance? - Management highlighted opportunities for increased gross profit margin through a higher D2C mix, economies of scale, and continued investment in brand-building initiatives [71][72] Question: Can you expand on the gross margin outlook for the year? - Management expressed confidence in maintaining gross profit margins above 60%, supported by price increases and operational efficiencies [92][93] Question: How is the apparel strategy evolving? - Management noted strong consumer engagement in apparel, driven by direct-to-consumer channels and collaborations with influencers, and plans to continue expanding this category [96][97]

Group 1 - On Holding (ONON) reported a quarterly loss of $0.11 per share, which was better than the Zacks Consensus Estimate of $0.24, and a decline from earnings of $0.16 per share a year ago, resulting in an earnings surprise of -145.83% [1] - The company posted revenues of $907.78 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.69%, and showing a significant increase from year-ago revenues of $627.66 million [2] - Over the last four quarters, On Holding has surpassed consensus revenue estimates four times, but has only exceeded EPS estimates once [2] Group 2 - On Holding shares have declined approximately 16.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $925.96 million, and for the current fiscal year, it is $1.12 on revenues of $3.53 billion [7] Group 3 - The Zacks Industry Rank indicates that the Retail - Apparel and Shoes sector is currently in the bottom 42% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The estimate revisions trend for On Holding was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Viewpoint - The Swiss sportswear company On reported a 32% increase in sales for the second quarter, prompting an upward revision of its full-year revenue guidance despite facing new tariffs on imports from Vietnam [1][2]. Financial Performance - Full-year sales are now expected to reach 2.91 billion Swiss francs ($3.58 billion), an increase from the previous forecast of 2.86 billion francs ($3.52 billion), aligning with Wall Street expectations [1]. - The company's gross margin guidance has been raised to a range of 60.5% to 61%, up from the previous range of 60% to 60.5% [2]. - In the second quarter, On reported a net loss of 40.9 million francs ($50.4 million) or 12 cents ($0.15) per share, compared to a net income of 30.8 million francs ($37.9 million) or 10 cents ($0.12) per share in the same period last year, primarily due to foreign exchange fluctuations [4]. Sales and Revenue Breakdown - Sales for the second quarter reached 749 million francs ($922 million), a 32% increase from 568 million francs ($699 million) a year earlier [5]. - Wholesale revenue was 441 million francs ($543 million), exceeding estimates of 429 million francs ($528 million), while direct sales were 308 million francs ($379 million), surpassing expectations of 279 million francs ($344 million) [7]. - Sales growth was reported across all regions, with notable performance in the Americas, Europe, the Middle East and Africa, and the Asia-Pacific region [8]. Market Position and Strategy - On has consistently grown sales in the mid-double digits and aims to increase brand awareness in various global markets [6]. - The company has strategically balanced direct sales through its own channels and wholesale, filling the gap left by Nike's reduced presence in wholesale [6]. - The CEO highlighted strong consumer demand in the American and Chinese markets, with a 50% same-store growth in retail and even larger growth in e-commerce [9][10].