Roger Federer’s On Holding saw substantial growth and raised expectations, but investors were left wanting more.
The sneaker company’s net sales rose 78.3% year-over-year in the first quarter to $468.8 million, while gross profit doubled to $273.3 million. The brand backed by the tennis icon also got a lift from supply chain issues normalizing after the economy-wide challenges of Q1 2021.
On slightly raised its full-year outlook to $1.94 billion — but investors were looking for more.
The company’s stock tumbled 9% on Tuesday, though it’s still up 76.7% since the start of the year.
In order to make in-roads into new markets, On is looking to athletes and high-profile sporting events. Expanding into tennis, it saw its biggest signings in that space, Iga Świątek and Ben Shelton, take the court for the first time in On gear in the first quarter.
On also notched a win at the Boston Marathon when one of its sponsored runners, Hellen Obiri, won the women’s race. The company is looking to leverage next year’s Paris Olympics for further visibility.
Co-CEO and CFO Martin Hoffmann touted the company’s multichannel strategy, noting that “our own retail net sales more than quadrupled year-over-year” with help from a new store in London.