On Holding shares fell as much as 20.29% on August 11, their worst single-day drop on record, after the Swiss running shoe maker's second-quarter results and trimmed guidance sent traders running for the exits. Second-quarter net sales reached CHF 850 million, up 21.6% at constant currency, but fell short of the CHF 879.6 million analysts expected, and management lowered its full-year constant-currency sales growth outlook to the low-20% range from a prior forecast of at least 23%. Direct-to-consumer sales jumped 34.3% at constant currency to a record 45.7% of total sales, gross margin climbed to 65.4%, and adjusted EPS swung to a profit of 0.35 CHF from a loss of 0.09 CHF a year ago. The company deliberately held back wholesale shipments in a promotional Americas marketplace to protect full-price integrity, which contributed to the revenue miss. On now trades at a forward P/E of 24.45 as of August 12.
On Holding LtdQ2 revenue miss and lowered full-year sales growth guidance triggered a record 20% share plunge.
