What's Sending On Holding Stock Sharply Higher This Week?

Core Insights - On Holding's stock price has surged nearly 19% this week following the release of strong third-quarter financial results, marking a significant recovery after a challenging year [1][6] Financial Performance - The company reported a 24.9% increase in net sales year-over-year, reaching 794.4 million Swiss francs (approximately $996 million), surpassing analysts' expectations [1][2] - Earnings per share were reported at 0.43 Swiss francs ($0.54), significantly higher than the predicted 0.27 Swiss francs ($0.34) [2] - Full-year revenue growth guidance has been raised to 34%, up from the previous 31%, projecting sales of about 2.98 billion Swiss francs (around $3.74 billion) [3] - The gross profit margin is now expected to be approximately 62.5%, an increase from the earlier estimate of 60.5% to 61% [3] Market Position and Expansion - On Holding specializes in premium athletic products, targeting a more affluent audience compared to competitors like Nike and Adidas [4] - The company has seen substantial growth in various regions, with net sales in the Asia-Pacific region increasing by 109% on a constant currency basis, while sales in the Americas rose by 21% and 33% in Europe-Middle East [5] Stock Performance Context - Despite the recent stock price increase, On Holding's shares are still considered expensive, trading at about 80 times trailing earnings, compared to Nike's trailing PE ratio of 33 [9] - The stock had previously fallen nearly 37% this year due to concerns over tariffs and global inflation, particularly affecting exports from Southeast Asia [6][8]