On Holding AG (ONON)

On Holdings AG Stock (ONON) tumbled by 8.86% due to its fourth-quarter 2023 financial results. While the company's performance for the year was record-breaking, with nearly 47% growth in net sales, a gross margin of almost 60%, and an adjusted EBITDA margin of over 15%, the results fell short of Wall Street's expectations.

• Currency Impact and Business Performance: One factor contributing to the discrepancy between On's performance and market expectations is the impact of currency exchange rates. As a Swiss company, On's results, when converted into dollars, may have appeared weaker due to the U.S. dollar's relative weakness against the Swiss franc. However, this is seen as a currency issue rather than a fundamental problem with the business. On's management remains confident in the company's long-term growth prospects, reiterating its goal of at least 26% annualized sales growth through 2026.
• Outlook and Valuation: Looking ahead, On's management expects the currency headwind to persist into the first quarter of 2024. Despite this, the company surpassed $2 billion in revenue in 2023 when converted to dollars. With a current valuation trading at around 5 times sales, which is considered more reasonable than its past valuations, On is seen as a stock worth watching. Management's expectation of sales doubling over the next three years further adds to the company's appeal for investors seeking long-term growth opportunities.

Shares of On Holding declined by 13.98% following the footwear company's release of its disappointing second-quarter earnings results. Despite positive revenue and EBITDA figures, an unrealized foreign exchange loss caused adjusted earnings per share to drop from $0.14 to $0.04.

https://www.fool.com/investing/2023/08/15/why-on-holding-stock-was-sliding-today/

ONON's stock fell after the company reported its latest quarterly financial results.The company raised its guidance from 1.7 to 1.74 billion Swiss Francs, which would represent about 42% year-over-year growth. However, the stock still dropped because this could be a case of acknowledging that this is a good business, but it's not necessarily a great time to start an On investment. 42% growth is spectacular for On, but with a market capitalization of roughly $10 billion, it traded at over 5 times forward sales, which is pricey for a shoe stock.

https://www.fool.com/investing/2023/05/16/heres-why-on-holding-stock-sank-today/