On Sets Record Sales on Demand in Asia-Pacific and Strong Pricing Power

High-end sneaker manufacturer On Holding (ONON) on Tuesday posted record sales on strong demand in the Asia-Pacific region and its pricing power.

The Switzerland-based firm reported second-quarter revenue jumped 28.7% year-over-year on a constant-currency basis to an all-time high of 567.7 million Swiss francs ($655.9 million), beating expectations. Earnings per share (EPS) of CHF0.09 ($0.10) came in short of forecasts.

Sales skyrocketed 73.7% in the Asia-Pacific market, 24.8% in the Americas, and 21.8% in Europe, the Middle East, and Africa. Direct-to-consumer (DTC) sales rose 28.1%.

The company explained that its “continued high share of full-price sales as well as lower freight rates” helped boost gross profit margin to 59.9% from 59.5% a year ago. 

‘We Have Laid the Groundwork’

Co-CEO and CFO Martin Hoffmann said that because of recent brand momentum, “it is clear that we have laid the groundwork for what we believe will shape On for many years to come.”

On affirmed its full-year outlook of at least 30% revenue growth on a constant-currency basis, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 16.0% to 16.5%.

Shares of On Holding, which rose less than 1% to $39.74 as of 10 a.m. ET Tuesday, have gained nearly 50% year-to-date.