On Holding (NYSE:ONON) shares are down premarket Tuesday after the company reported earnings for its latest quarter.
ONON shares have rallied significantly this year, up more than 88%, but the stock is currently down over 1% despite reporting solid earnings and revenue for the quarter.
In Q1, ONON's net sales increased 78.3% to CHF 420.2 million (CHF 1 = $1.1182), boosted by an 86% rise in its wholesale sales channel. In addition, direct-to-consumer sales increased by 64.3%. Adjusted earnings came in at CHF 0.15 per share.
The company said the rise in net sales was supported by a largely normalized supply chain environment versus the first quarter of 2022.
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.
"We entered into 2023 with high ambitions and we are very pleased to see the continuation of our growth journey and increased profitability in the first quarter of the year," said Caspar Coppetti, co-founder and executive co-chairman of On.