On Holding AG (NYSE:ONON), Swiss sports and footwear maker, stock fell 7.57% (As on May 17, 11:10:28 AM UTC-4, Source: Google Finance) though the company reported solid earnings and revenue for the quarter.  With improving supply chains and normalizing air freight usage trends the company was able to clock gross margins of 58.3% as compared to 51.8% a year ago. The significantly improved operational environment and product availability versus the prior year period contributed to the strong growth and allowed On to capture the full momentum of the brand. Further, while ONON is seeing robust growth across all of its major geographic regions, net sales in the direct-to-consumer and wholesale channels also rose by 64.3% and 86% respectively during this period. The gross profit increased 100.6% to CHF 244.9 million from CHF 122.1 million. The net income increased 209.2% to CHF 44.4 million from CHF 14.3 million; and the net income margin increased to 10.6% from 6.1%. the cash and cash equivalents decreased by 2.6% to CHF 361.3 million from CHF 371.0 million; and the net working capital was CHF 573.0 million as of March 31, 2023, which reflects an increase of 24.8% compared to December 31, 2022.

ONON in the first quarter of FY 23 has reported the adjusted earnings per share of 16 cents, beating the analysts’ estimates for the adjusted earnings per share of 9 cents, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue growth of 78.3 percent to $454.1 million in the first quarter of FY 23, beating the analysts’ estimates for revenue of $411.4 million. The net sales through the direct-to-consumer (“DTC”) sales channel increased 64.3% to CHF 137.0 million. The net sales through the wholesale sales channel increased 86.0% to CHF 283.2 million. The net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased 51.6% to CHF 118.9 million, 91.9% to CHF 270.2 million and 89.4% to CHF 31.1 million, respectively. The net sales from shoes, apparel and accessories increased 80.0% to CHF 400.5 million, 48.9% to CHF 16.9 million and 52.3% to CHF 2.8 million, respectively;

Looking ahead, the company raised its net sales outlook for the full fiscal year ending December 31 to at least CHF 1.74B, while it maintained its outlook for gross profit margin in 2023 to reach 58.5%, implying an absolute gross profit of over CHF 1B.