On Holding AG (NYSE:ONON) stock fell 13.68% (As on March 12, 12:18:53 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 23.  As of December 31, 2023, the cash and cash equivalents increased by 33.3% to CHF 494.6 million from CHF 371.0 million; and net working capital was CHF 496.2 million as of December 31, 2023, which reflects an increase of 8.1% compared to December 31, 2022.

ONON in the fourth quarter of FY 23 has reported the adjusted loss per share of 6 cents, missing the analysts’ estimates for the adjusted earnings per share of 11 cents. The company had reported the adjusted revenue growth of 21.9 percent to $504.7 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $515.3 million.

On has introduced the aspiration to achieve a net sales CAGR of 26% through 2026. For the full year 2024, On expects to grow even beyond this rate and to achieve a constant currency net sales growth rate of at least 30%. At current spot rates and reflecting the considerable recent Swiss Franc strength, this implies reported net sales of at least CHF 2.25 billion in 2024. Negative foreign exchange impacts are expected to be more pronounced in the first half of 2024.

For the first quarter of 2024 specifically, taking into account the lapsing of a strong wholesale quarter in the first quarter of 2023, On expects an increased DTC share and to achieve a constant currency net sales growth rate of 26%. At current spot rates, this implies expected reported net sales in the first quarter 2024 of CHF 495 million.

In addition to the growth ambitions voiced in October 2023, On further introduced the vision to be the most premium global sportswear brand. This vision comes to life in the form of premium products and a premium customer experience, but also a premium financial profile and level of profitability. For 2024, On anticipates a full year gross profit margin of approximately 60%, in line with the previously announced mid-term target. On expects to take the next step towards its mid-term target to reach an adjusted EBITDA margin of 18%+. In 2024, On anticipates to achieve a full year adjusted EBITDA margin in the range of 16.0 – 16.5%.