Why On Holding Stock Is Running Tuesday

On Holding AG ONON shares are trading higher Tuesday after the company reported fourth-quarter results. 

What Happened: On Holding said fourth-quarter revenue increased 91.9% year-over-year to CHF 366.8 million ($396.98 million). Net direct-to-consumer sales were up 76.4% on a year-over-year-basis, while wholesale channel sales jumped 104.3%. 

On Holding reported fourth-quarter adjusted earnings of CHF 0.02 up from a loss of CHF 0.04 year-over-year. 

The company ended the quarter with cash and equivalents of CHF 371 million, down 43.2% year-over-year. 

"After a great year and exceptionally strong fourth quarter well beyond our own expectations, we are heading into 2023 with a lot of momentum and in a position of strength," said Martin Hoffmann, co-CEO and CFO of On Holding.

"After navigating through a challenging 2022, including supply shortages, tight production capacities and disruption of global trade lanes, we are looking forward to a great year with largely normalized operations."

On noted that it's experiencing ongoing momentum across all regions, channels and product groups. The company expects first-quarter sales growth of 61% over the prior year's quarter. 

Full-year 2023 net sales are expected to be approximately CHF 1.7 billion. Gross profit margins are expected to come in at 58.5% for 2023.

See Also: On Holding Q4 Revenue Nearly Doubles; Sprints Into New Consumer Groups

Following the company's quarterly report, Wedbush analyst Tom Nikic maintained On Holding with an Outperform rating.

ON Price Action: On Holdings shares were up 16.4% at $25.11 at time of publication, according to Benzinga Pro.

Photo: courtesy of On Holding.