2023-03-21 07:13:23 ET
On Holding ( NYSE: ONON ) stock surged over 13% in premarket trading on Tuesday as sales surged and margins remained robust to close 2022.
The European footwear manufacturer posted a 92% rise in sales year over year to CHF 366.8M ($396.5M), bringing full-year revenue over CHF 1B for the first time in history. Gross profit margin in Q4 also rose to 58.5%, improving sharply from 57.1% in Q3.
“After a great year and exceptionally strong fourth quarter well beyond our own expectations, we are heading into 2023 with a lot of momentum and in a position of strength,” Martin Hoffmann, Co-CEO and CFO of On, commented. “After navigating through a challenging 2022, including supply shortages, tight production capacities and disruption of global trade lanes, we are looking forward to a great year with largely normalized operations.”
Moving forward, the company expects net sales of at least CHF 1.7B ($1.84B) for 2023, a 39% rise from 2022. Sales growth in Q1 is expected to accelerate 61% against an Omicron impacted Q1 of 2022. A “normalized supply chain environment” is also expected to foster continued margin improvement toward a stated mid-term target of 60%.
Shares of On Holding ( ONON ) holding rose 13.35% before the bell on Tuesday.
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On Holding stock accelerates on strong sales, margin expansion