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On Holding Soars on Unexpected Profit for Swiss Shoe Producer

On Holding, backed by the tennis star Roger Federer, posted a quarterly profit, beating analysts' expectation of a loss.
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On Holding ONON shares soared Tuesday after the Swiss athletic shoe company backed by the tennis star Roger Federer reported an unexpected profit for the third quarter.

On, which went public in September, posted net income of 13 million Swiss francs (US$14 million), or 0.04 franc a share, for the quarter, up from 8.1 million francs, or 0.03 franc a share, a year earlier.

The FactSet analyst consensus called for a loss of 0.11 franc for the latest quarter.

Net sales hit 218 million francs (US$234.8 million) in the quarter, up 68% from 130.1 million francs a year earlier. Analysts anticipated 182.8 million francs for the latest quarter.

Third-quarter sales were the strongest since the company began in 2010, Chief Executive Martin Hoffman said in a statement.

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On recently traded at $43.61, up 20%. It has jumped 46% since Sept. 15, its first day of trading, amid consumer enthusiasm for its shoes.

"Recent supply chain challenges will lead to a transitory supply shortage in the fourth quarter and the first half of 2022," Hoffman said in a statement.

"But since early November, all our production factories are open, and our outlook on net sales and adjusted Ebitda exceeds our original assumptions."

On Holding projected 710 million francs in sales for all of 2021, up 67% from 2020. Analysts predicted 678.6 million francs. On estimates sales of 960 million francs for 2022.

As for Federer, the 40-year-old is recovering from knee surgery and is unlikely to play the 2022 Australian Open, which starts on Jan. 17.