2023-05-16 07:15:30 ET
On Holding AG ( NYSE: ONON ) cooled off in early trading on Tuesday after recording another quarter of record revenue .
The retailer pointed to strong brand momentum across all regions, channels, and product groups, as well as a significantly improved operatational environment.
Sales rose 78.3% during the quarter, including a 64.3% increase in direct-to-consumer sales. Sales were up across shoes (+80%), apparel (+48.9%) and accessories (+52.3%).
On Holdings' gross profit margin improved to 58.3% of sales from 51.8% a year ago, reflecting the normalized supply chain environment and the resulting discontinuation of exceptional air freight usage, which had weighed on profitability.
Adjusted EBITDA increased 288.2% to CHF 61.0M.
Looking ahead, On Holding said it has a strong order book for the second half of the year, driven by existing and upcoming product launches. On Holding ( ONON ) boosted full-year revenue guidance for the company to reach at least CHF1.74B vs. CHF1.73B consensus.
Shares of On Holding AG fell 2.09% in premarket trading to $32.74 to cut into the +90% year-to-date rally.
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On Holding knocks out record revenue off strong brand momentum