On running shoes at the headquarters of Own in Zurich, Switzerland.
CNBC
But The Swiss Sportswear Company’s second quarter led to an increase of 32%, leading to an increase in its entire year revenue guidance. New tariff On imports from Vietnam.
Buzzy sneaker brand, which is credited with taking a market share NikeNow a full year-selling of 2.91 billion Swiss Frank ($ 3.58 billion) is expected, from its previous perspective of 2.86 billion franc ($ 3.52 billion). According to LSEG, it corresponds to the expectations of the 2.92 billion franc ($ 3.59 billion).
Compared to its previous approach between 60% and 60.5%, its gross margin guidance increased from 60.5% to 61%.
The company, which is about 90% of its source from Vietnam, raised prices to offset high costs on 1 July. This has not seen the demand between wholesaled partners or consumers, CEO Martin Hoffman told CNBC in an interview.
Hoffman explained, “We have great confidence in our lifestyle business, so we increased the price towards lifestyle business, while we tried to live a little more on our running products,” Hofman explained. “So far, we have not seen negative effects from the increase in price.”
The company, which increased by more than 30% in almost every quarter since 2023, defeated the hopes of selling Wall Street for the second quarter.
Here is described how it was done in the second quarter compared to Wall Street, based on a survey of analysts by LSEG:
- Per share loss: Adjusting 9 cents ($ 0.11) in Frank. This figure was not immediately comparable for estimates.
- Income: 749 million franc ($ 922 million) vs 705 million franc ($ 868 million) expect
The net loss of on -30 in three months ended June 30 was 40.9 million franc ($ 50.4 million) or 12 cents ($ 0.15) per share, compared to $ 30.8 million ($ 37.9 million), or 10 cents ($ 0.12) per share in a period of year. The damage was mainly inspired by foreign exchange ups and downs between the US dollar and Swiss Frank.
Sales increased from 568 million Frank ($ 699 million) to 749 million francs ($ 922 million) a year ago.
Established in Switzerland in 2010, demanded to become the most premium sportswear brand in the market. This is one of the many companies that are sharing with Nike, especially in its running segment. The company draws a fraction of the annual sales of Nike, but it has gained a reputation for innovation, Recently knocked against Inheritance sneaker veteran.
In a sneaker category, which is relatively soft in recent years, On has continuously increased sales in mid-double points and still has more space that its brand awareness in some parts of the world is low.
A key of strategy is balanced through its website and balanced sales and sales through stores and sales. At a time when Nike pulled away from the wholesalers, and others filled the important shelf location by increasing the footprint and digital revenue of their store.
During the second quarter, both ON’s wholesale and direct-consumer revenue exceeded the hopes of Wall Street. According to the Strikunt, the on bulk revenue of 429 million franc ($ 528 million) was 441 million francs ($ 543 million) compared to estimates. According to the Strikunt, direct sales were 308 million francs ($ 379 million) compared to the expectations of 279 million Frank ($ 344 million).
Sales in America; Europe, Middle East and Africa; According to the Strikint, and the Asia-Pacific region defeats all expectations.
While its performance is not broken in China, Hoffman said it is a bright place for the company, as sales in the second quarter increased by about 50% in the second quarter compared to the period.
Hofman said, “is very strong for American and Chinese consumers.” “We have basically seen 50% of the same growth growth in our retail stores, even we have increased a big increase in us. [e-commerce] Channels, and then new stores come to the top … China is a very strong market for us. ,
