Categories: Market

Temporary 19 percent loss: What’s behind the collapse of ten shares?

class = “sc-cffd1e67-0 iQNQmc”>

1/5
Shares of Swiss running shoe company On are traded on the New York Stock Exchange.
Daniel Hügli

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.

More about open
Are these bad omens?
Ten founders sell stock package worth over $5.1 million
More profit and sales
On wants to be “the strongest global premium sports brand”.

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.

Advert

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.

external content
Would you like to see this additional content (Tweet, Instagram, etc.)? If you agree to the setting of cookies and the transmission of data to external providers, you can allow all cookies and view external content directly.

Source :Blick

Share
Published by
Tim

Recent Posts

Terror suspect Chechen ‘hanged himself’ in Russian custody Egyptian President al-Sisi has been sworn in for a third term

On the same day of the terrorist attack on the Krokus City Hall in Moscow,…

1 year ago

Locals demand tourist tax for Tenerife: “Like a cancer consuming the island”

class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…

1 year ago

Agreement reached: this is how much Tuchel will receive for his departure from Bayern

class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…

1 year ago

Worst earthquake in 25 years in Taiwan +++ Number of deaths increased Is Russia running out of tanks? Now ‘Chinese coffins’ are used

At least seven people have been killed and 57 injured in severe earthquakes in the…

1 year ago

Now the moon should also have its own time (and its own clocks). These 11 photos and videos show just how intense the Taiwan earthquake was

The American space agency NASA would establish a uniform lunar time on behalf of the…

1 year ago

This is how the Swiss experienced the earthquake in Taiwan: “I saw a crack in the wall”

class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…

1 year ago