Why Are On Holding Shares Surging Today?

On Holding AG ONON reported third-quarter FY21 sales growth of 67.6% year-on-year to CHF218 million.
Net sales through the wholesale sales channel increased 56.7% to CHF 142.3 million.
Net sales through the direct-to-consumer sales channel improved 93.0% to CHF 75.7 million.
Gross profit increased 85.4% Y/Y to CHF 131.3 million, with the margin expanding 570 basis points to 60.2%.
Adjusted EBITDA increased 67.9% to CHF 37.9 million, and the margin remained at 17.4%.
The company held CHF 672 million in cash and equivalents as of September 30, 2021.
"We expect the demand for the On brand to increase. Recent supply chain challenges will lead to a transitory supply shortage in the fourth quarter and the first half of 2022. But since early November, all our production factories are open, and our outlook on net sales and adjusted EBITDA exceeds our original assumptions," said Martin Hoffmann, Co-CEO and CFO.
Outlook: On Holding sees FY21 sales of CHF 710 million, representing a 67% rise Y/Y.
The company expects FY22 sales of at least CHF 960 million.
Price Action: ONON shares are trading higher by 22.4% at $44.6 on the last check Tuesday.