On Holding AG (NYSE:ONON) stock fell 0.097% (As on August 14, 11:21:55 AM UTC-4, Source: Google Finance) after the company’s net profit grew to 30.8 million Swiss francs in the second quarter, and ended up with a net profit of 122.2 million Swiss francs in the first half of the year. A year earlier, On Holding AG still recorded a net profit of 47.7 million Swiss francs. The profit marks a growth of 156.5 percent. The gross profit reached CHF340.2 million in the quarter, representing a strong and premium gross profit margin of 59.9%. The company has improved its cash position from CHF584.6 million at the end of Q1 ’24, up to CHF652.4 million at the end of Q2.

ONON in the second quarter of FY 24 has reported the adjusted earnings per share of CHF0.14. The company had reported the adjusted revenue of CHF567.7 million in the second quarter of FY 24, beating the analysts’ estimates for revenue of CHF562.7 million. The company has surpassed the one billion mark for the first half of the year, during which net sales amounted to 1.08 billion Swiss francs. On attributed the positive results to “the strength of the multichannel strategy across all markets and products, with an excellent performance in Asia Pacific”. In addition, the company’s apparel business grew by between 63 and 73.7 percent. Wholesale net sales grew by 27.6% in the quarter on a reported basis and 28.8% on a constant currency basis, reaching CHF358.2 million. D2C channel continued to outperform wholesale and reached CHF209.4 million in Q2, growing by 28.1% year over year on a reported basis and 30.4% on a constant currency basis. As a result, the Q2 D2C share increased versus the prior year period reaching 36.9%.

On is reiterating its full year expectation of at least 30% net sales growth on a constant currency basis. Considering the recent strength of the Swiss Franc and assuming spot rates persist at current levels for the remainder of the year, this implies reported net sales of at least CHF 2.26 billion in 2024 and the continuation of On’s strong momentum in the second half of the year. Additional focus over the next months will be placed on successfully advancing On’s warehouse automation project in the U.S., with a view towards scaling On’s distribution capabilities in North America over the medium term.

On additionally remains well on track to reach its profitability ambitions for the full year, and expects to achieve a gross profit margin of around 60% and an adjusted EBITDA margin of 16.0 – 16.5%.