Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions an ...

The Swiss running shoe maker is quickly making a name for itself. Investors are always looking for the next big thing, but investing before a company has a proven track record can come with a lot of risk. On occasion, you can find a stock with huge opportunities that's still in its early growth stages but has already demonstrated enough success for investors to be confident about where it's going. That's what's happening with On Holding (ONON 4.04%). The Swiss company exploded onto the activewear scene with ...

Currently, the United States is being a pillar in the company's success and although it began in Switzerland, the surrounding countries in Europe seem to be underdeveloped in terms of interest in ON. I think this could change if the company continues to execute its awareness strategy. Rising Popularity On Holdings is a Swiss company that is gaining popularity in the running shoes and sportswear niche thanks to its CloudTec and Speedboard technology that seek to provide a premium experience to athletes or pe ...

A strong earnings report lifted shares of the running shoe company. According to data from S&P Global Market Intelligence, the stock was up 24.9% for the week. Performance on the bottom line was strong as well, as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 27% to $85.3 million, and adjusted earnings per share more than doubled from $0.17 to $0.36, which was well ahead of estimates of $0.15. Co-CEO Martin Hoffman said, "The first quarter was a very strong star ...

That strong quarterly report, along with a lagging share price, is what drove the Needham analyst's optimistic take on the company. Andreeva specifically pointed to product mix gains in DTC and more efficient inventory management as trends that helped the company exceed analyst expectations in the first quarter. She rates On Holding as a top pick thanks to the sales and profitability momentum. The company itself has maintained that it expects gross profit margin to continue to rise with a goal of at least 6 ...

Financial Data and Key Metrics - Net sales for Q1 2024 reached CHF 508 million, marking the first time the company surpassed the CHF 500 million mark in a single quarter [4] - Currency-neutral growth was 48.7%, significantly higher than reported growth [11] - Adjusted EBITDA margin for Q1 was 15.2%, up from 14.5% in Q1 2023 [14] - Gross profit margin improved to 59.7% in Q1 2024, up from 58.3% in Q1 2023 [38] - Operating cash flow was CHF 81 million, increasing the cash position from CHF 494.6 million at the end of 2023 to CHF 584.6 million at the end of Q1 2024 [15] Business Line Performance - Direct-to-consumer (DTC) net sales grew by 39% year-over-year, contributing CHF 190.5 million to the top line [52] - Wholesale revenues grew by 12.2% year-over-year, reaching CHF 317.7 million in Q1 [31] - Apparel net sales grew by 16.7% year-over-year, resulting in CHF 19.7 million for Q1 [57] - Footwear net sales grew by 21% to CHF 484.7 million in Q1, driven by strong performance in running shoes [56] Regional Performance - EMEA region grew by 6.1% to CHF 126.2 million in Q1, with constant currency growth of 10.4% [32] - Americas region grew by 22% year-over-year to CHF 329.6 million, with strong demand in the US and momentum in Latin America [54] - Asia Pacific region grew by 68.6% year-over-year, reaching CHF 52.4 million in Q1, with Japan showing exceptional performance [35][36] Strategic Direction and Industry Competition - The company is focusing on expanding its digital ecosystem, including the launch of a global commercial app [11] - On is gaining market share in key cities like Tokyo, Berlin, and Los Angeles, with market shares exceeding 10% in some regions [5] - The company is investing in apparel, with a new training collection set to launch in August and a focus on consistent sizing to increase the addressable market [6][57] - On is leveraging partnerships with athletes and celebrities, such as FKA Twigs, to build brand credibility and awareness [17][75] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the strong start to 2024, with net sales exceeding expectations [10] - The company reiterated its full-year constant currency net sales growth expectation of at least 30%, with reported net sales expected to reach at least CHF 2.29 billion [41] - The upcoming Olympics in Paris are seen as a significant opportunity to elevate the brand and build credibility in the running world [66] Other Important Information - The company opened new stores in Berlin and Portland, bringing the total number of stores globally to over 50, with 34 owned and operated by On [28] - On is planning to open additional stores in Paris, Milan, and Austin in the coming months [28] - The company is actively managing inventory, with inventory levels remaining stable at CHF 365.3 million at the end of Q1 [15] Q&A Session Summary Question: Asia Growth and Momentum - The company is proud to have surpassed 10% market share in Japan and is on track to achieve similar results in China [20] - Japan is performing ahead of expectations, benefiting from tourism and currency effects, while Australia is also showing strong growth [21] Question: Wholesale Growth and Distribution Channels - Wholesale growth in Q1 was 12.2%, with a focus on key accounts like Dick's Sporting Goods, which is resonating well with younger consumers [31][82] - The company is expanding its presence in key accounts, with plans to increase the number of doors from 220 to 285 by the end of the year [93] Question: Gross Margin Outlook - The company expects to maintain a gross profit margin of around 60% for the full year, with a long-term goal of 60% plus [117] - The strong margin is driven by a high share of full-price sales and the premium positioning of the brand [117] Question: Apparel Performance and Sizing Adjustments - Apparel demand is strong, particularly in DTC channels, with growth rates expected to accelerate significantly for the remainder of the year [58] - The company has adjusted sizing to be more consistent with market standards, which has been well-received and is driving lower return rates [104][121] Question: Inventory and Supply Chain - The company is confident in its supply chain's ability to meet demand for the back half of the year, with no significant disruptions expected [163] - On is diversifying its supply chain as it expands into new categories like apparel [162] Question: Olympics and Brand Elevation - The Olympics are a key focus for the company, with plans to open a second store in Paris and leverage the event to elevate the brand [66][110] - The company is planning significant marketing activations around the Olympics to drive brand awareness [110]

Sales are surging as awareness grows. Shares of shoe company On Holding (ONON 15.51%) jumped to new 52-week highs on Tuesday after the company reported financial results for the first quarter of 2024. As of 10:30 a.m. ET, On stock was up 15%. Consumers are buying more shoes directly from On On is based in Zurich, and reports its earnings results in Swiss francs. But I'll reference the approximate U.S. dollar equivalent for simplicity. In Q1, On generated record quarterly net sales of over $560 million, whic ...

On Holding (ONON) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 137.50%. A quarter ago, it was expected that this running-shoe and apparel company would post earnings of $0.11 per share when it actually produced a loss of $0.06, delivering a surprise of -154.55%. Over the last four ...

Key Points On's NYSE: ONON Q1 results prove it is gaining traction with athletes and is on track to dethrone Nike NYSE: NKE as the god of running shoes. The company's results exceeded expectations on strength in all channels, segments, and geographical regions and are expected to accelerate as the year progresses. Evidence the shoes are more than a fad includes the latest Boston Marathon win. Helen Obiri of Kenya became the 6th woman to repeat back-to-back wins, the first since 2005, wearing a pair of On ru ...

Factors to Note On Holding AG (ONON) is scheduled to report first-quarter 2024 results on May 14, before the opening bell. In the last reported quarter, the company's earnings missed the Zacks Consensus Estimate by 154.6%. Q1 Estimates The Zacks Consensus Estimate for the bottom line is pegged at 16 cents per share, indicating no change from the year-ago levels. In the past 30 days, estimates for current-quarter earnings have witnessed downward revisions of 5.9%. The consensus mark for revenues is pegged at ...