On Holding shares jump after pace of sales, forecast beats expectations
On Holding AG ONON,
Shares jumped 7.6% in premarket Friday trading after reporting fourth-quarter sales that beat expectations and gave an upbeat sales forecast. The running shoe company, which is backed by tennis star Roger Federer, reported a net loss of 187.0 million Swiss francs ($199.9 million), or 0.60 Swiss francs per share, after a loss of 2.6 million Swiss francs, or 0.01 Swiss francs per share. Sales totaled CHF 191.1 million (US$204.3 million) compared to CHF 124.3 million. The FactSet consensus predicted a loss of 25 CHF cents and revenue of CHF 179.5 million. The company says manufacturing in Vietnam has returned to 100% of pre-lockdown commitments since December 2021. On’s spring/summer product launch has been moved to Q1 from Q4. “Overall, we are accelerating the capacity expansion plan this year and leveraging our close relationships with all plant partners,” On co-CEO Martin Hoffmann said in a statement. communicated. “This includes the expansion into Indonesia, where we have just started production in a new factory to diversify our production network.” For 2022, we expect a turnover of more than 990 million francs. The FactSet consensus is 970.2 million francs. The shares began trading in September 2021. The stock is down 32.5% over the past three months while the S&P 500 SP Index,
is down 4.5%.