Key facts
- On missed second-quarter net sales estimates.
- The company reported 850.3 million Swiss francs in net sales for the second quarter.
- Analysts expected 878.16 million Swiss francs in net sales.
- On cited a challenging consumer environment as a reason for the miss.
- Higher costs also contributed to the sales shortfall.
- Growth in the Americas slowed.
- On raised its full-year gross profit margin outlook.
Sportswear brand On announced its second-quarter financial results, revealing that it missed quarterly net sales expectations. The company reported net sales of 850.3 million Swiss francs, which fell short of the 878.16 million Swiss francs anticipated by analysts. On cited a challenging consumer environment and higher costs as the primary reasons for this sales performance. Growth in the Americas region was specifically noted as a contributing factor to the slowdown. Despite the miss on sales, the company provided a more optimistic outlook for its full-year gross profit margin, which it raised. This suggests that while top-line growth faced headwinds, On expects to improve its profitability on the goods it sells. The company's ability to navigate increased costs and a subdued consumer spending landscape will be key to its performance in the remainder of the fiscal year.