Roger Federer-Backed Sneaker Maker On Holding Raises Outlook as Sales Soar

On Holding (ONON) shares soared 16% in premarket trading when the high-end sneaker maker posted better-than-expected results and boosted its guidance on booming direct-to-consumer (DTC) sales.

The Switzerland-based firm backed by tennis great Roger Federer reported second-quarter revenue jumped 32% year-over-year to 749.2 million Swiss francs ($925.9 million), well above Visible Alpha forecasts.

DTC sales soared 47% to CHF308.3 million ($381.0 million), which the company credited to “continued focus on operational excellence, and favorable foreign exchange developments.” DTC made up 41% of total revenue, a new second-quarter record. Sales from its wholesale channel increased 23% to CHF441.0 million ($544.8 million).

‘Our Strategy Is Working’

Co-founder and Executive Co-Chair David Allemann said On is “playing the long game,” and that the performance “proves our strategy is working—from our diversified portfolio of iconic footwear franchises to our stellar growth in apparel and our global brand footprint.”

On now sees full-year revenue of CHF2.91 billion ($3.60 billion), compared to the earlier estimate of CHF2.86 billion ($3.53 billion), and gross profit margin in the range of 60.5% to 61.0%, versus the previous outlook of 60.0% to 60.5%.

Shares of On Holding finished trading yesterday down nearly 17% year-to-date.