After a Strong Q1, the Swiss Sporting Goods Manufacturer On Holding (ONON) Can Confirm Its Sales Forecast of at Least 30% For The Current Year.

The shares of Swiss sporting goods manufacturer On Holding (ONON) have been stuck in a sideways range for some time. This could change, as the company reported a strong first quarter on Tuesday (March 14) with record sales and profitability. Martin Hoffmann, Co-CEO and CFO of On, said: "The first quarter was a very strong start to the year and a further step in the implementation of our long-term strategy to become the most premium global sportswear brand." The company, which is known for its high-quality sports shoes, is increasingly building a strong brand and focusing on direct sales. The company has recorded significant market share gains among runners around the globe. In the future, the company also wants to score in newer areas such as tennis and training and thus further expand its addressable market on its way to becoming the world's leading sportswear brand. In Q1, net sales rose by 20.9% to 508.2 million Swiss francs (CHF), or by 29.2% on a constant currency basis. The Asia-Pacific region was particularly strong with growth of 91%. Adjusted basic earnings per share rose from CHF 0.15 to CHF 0.33.

Management announced groundbreaking innovations and major partnerships for the coming months. The management has high hopes for the increase in awareness this summer at the Olympic Games in Paris. On confirmed its expectation of currency-adjusted net sales growth of at least 30% for the current year.

On Holding AG (ISIN CH1134540470): The company is expected to grow EPS between 33% and 45% p.a. in the coming years. The forward P/E 2024 ratio of 38 does not seem exaggerated. The strong 1st quarter gives the share a corresponding boost.

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