Why On Holding Stock Just Hit a 2-Year Low

Shares of On Holding AG (NYSE: ONON) plunged as much as 22% on Tuesday, sinking to a roughly two-year low near $31.48 after the Swiss sportswear maker’s second-quarter results fell short of Wall Street’s revenue expectations, spooking investors despite otherwise healthy profitability.

On reported net sales of CHF 850.3 million for the quarter ended June 30, up 13.5% year-over-year (21.6% in constant currency), but well below the roughly CHF 878-881 million analysts had forecast.

The miss was driven largely by a sharp slowdown in wholesale, which grew just 4.8% (12.7% constant currency) — a steep deceleration from the 25.1% pace posted in the first quarter.

On said the pullback was intentional, aimed at protecting full-price integrity ahead of a wave of new product launches planned for 2027.

Americas revenue, On’s largest region, expanded only 13% in constant currency, slowing for a second straight quarter and raising concerns about demand in its core U.S. market amid a more promotional retail environment and higher tariff costs.

Management also trimmed its full-year constant-currency revenue growth outlook to the “low-20% range,” down from a prior floor of 23%, implying full-year net sales of CHF 3.47-3.56 billion.

The disappointing top line overshadowed strong underlying metrics: net income surged to CHF 105 million from a year-ago loss, gross margin expanded to 65.4%, and adjusted EPS of CHF 0.35 topped estimates. Direct-to-consumer sales jumped 26%, and Asia-Pacific sales soared 43.1%.

Still, investors focused on the revenue miss and cooling wholesale and Americas growth, sending shares tumbling and dragging peer Nike modestly lower as well.