ONON Earnings Prediction
The chart below shows how ONON performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ONON sees a -2.01% change in stock price 10 days leading up to the earnings, and a +6.32% change 10 days following the report. On the earnings day itself, the stock moves by +0.39%. This data can give you a slight idea of what to expect for the next quarter's release.
ONON Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
635.80M
32.32%
12.00%
Gross Margin
60.60%
1.20%
1.10%
Operating Margin
11.42%
-5.07%
37.09%
Net Margin
4.80%
-60.72%
-11.76%
EPS
0.09
-50.00%
0.00%
No Data Available
ONON Earnings Analysis
On Holding AG Corporation (ONON.N) Earnings Conference Call
Positive
Record Net Sales Growth: 1. Record Net Sales: On Holding AG achieved record net sales of CHF636 million in Q3 2024, representing a 33% growth on a constant currency basis compared to the previous year.
D2C Sales Surge: 2. D2C Channel Growth: Direct-to-consumer (D2C) net sales grew by 49.8% in Q3, reaching CHF246.7 million, which accounted for 38.8% of total net sales, significantly exceeding expectations.
APAC Growth Surge: 3. Strong APAC Performance: The APAC region saw a remarkable growth of over 85% on a constant currency basis in the first nine months of 2024, contributing over 10% to global net sales for the third consecutive quarter.
Record Gross Profit Margin: 4. High Gross Profit Margin: The company reported a gross profit margin of 60.6% in Q3, the highest since going public, reflecting strong brand strength and operational efficiency.
Strong Cash Flow Generation: 5. Positive Cash Flow: On Holding generated over CHF125 million in positive cash flow during Q3, contributing to a cash balance of nearly CHF750 million at the end of the quarter.
Negative
Apparel Growth Challenges: 1. Inventory Constraints: Apparel growth was constrained due to supply chain issues, resulting in a growth rate tracking slightly behind expectations at 33.4%.
Unrealized Foreign Exchange Loss: 2. Unrealized FX Loss: The company reported a significant unrealized foreign exchange loss of CHF37.2 million due to fluctuations in the Swiss franc against the U.S. dollar.
Wholesale Channel Growth Decline: 3. Wholesale Growth Moderation: Wholesale channel growth moderated to 23.2%, attributed to door closures in Europe and inventory constraints impacting supply to wholesale partners.
Operational Challenges Impacting Performance: 4. Operational Challenges in Q2: The company acknowledged operational challenges in Q2 that limited their ability to capture full demand, impacting overall performance.
High SG&A Cost Structure: 5. Increased SG&A Expenses: SG&A expenses, excluding share-based compensation, were CHF292.8 million, equivalent to 46% of net sales, indicating a high cost structure relative to sales.
ONON FAQs
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ONON Earning Call Sentiment
On Holding AG (ONON) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ONON.N
3.08%Positive
The earnings call presents strong financial performance with significant sales growth and improved margins, despite regulatory and supply chain challenges. The optimistic guidance and strong brand momentum, especially in D2C sales, suggest positive sentiment. However, the lack of a share buyback program and potential FX headwinds temper the outlook slightly. The Q&A highlights ongoing improvements and brand awareness gains, supporting a positive view. Overall, the positive financial metrics and brand growth outweigh the risks, predicting a 2% to 8% stock price increase over the next two weeks.
