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Following the announced business figures, On Holding shares experienced activity once again. Shares fell 19 percent in trading on the New York Stock Exchange on Tuesday. This is the biggest loss in intraday trading since the company went public in September 2021, according to Bloomberg data.
With a 9 percent loss at the close of trading, it was the largest daily loss since August 15, 2023. This meant that On stock ended the good run it had enjoyed from late January to late February. In five weeks, it rose from $26 to $35, an eight-month high.
Usual price fluctuations
The shoe and clothing maker’s stock market downturn repeats a pattern often seen in the Swiss company’s short stock market history. After the quarterly figures are announced, On shares usually experience major price breaks, either up or down.
On the one hand, this is not unusual for young companies due to the poor predictability of business developments. On the other hand, the question may also arise to what extent On’s market orientation can be improved.
On Tuesday it unexpectedly announced a loss of 26.8 million francs per share for the fourth quarter of 2023. Analysts had previously expected profit. Foreign exchange effects were cited as responsible for the loss. Ten also narrowly missed analysts’ expectations in terms of sales.
Sales planned to double by 2026
On expects sales to increase 30 percent at constant exchange rates in 2024. At current exchange rates, this amounts to 2.25 billion francs. On also wants to double sales by 2026. On expects an adjusted EBITDA margin of 16 to 16.5 percent for 2024.
On’s share price performance this year is at 13 percent despite Tuesday’s negativity. That’s less than Deckers, the parent company of Ten rival Hoka One One, which has gained 37 percent this year, but more than Adidas (2 percent) or Nike (minus 7 percent).
The price-earnings ratio for ten is 41 at the end of 2024, which is a very high figure. This ratio is 33 for Deckers and 27 for Nike.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
