Investors were very much switched on to On Holding (ONON -1.78%) Tuesday, as the Switzerland-based running shoe maker delivered first-quarter results that crushed analyst estimates. The company also raised its guidance, and that happy combination sent the shares soaring by nearly 16% in price during the day, before they settled down to close 1% above Monday's level.
For the quarter, On Holding experienced a delightfully powerful year-over-year increase in net sales of almost 68%. That top-line tally was nearly 236 million Swiss francs ($235 million). On the bottom line the company flipped dramatically to a non-IFRS (adjusted) profit for the period, specifically 14.3 million Swiss francs ($14.2 million, or $0.05 per share) from the year-ago quarter's 10.5 million Swiss franc ($10.5 million) loss.
That performance must have shocked the analysts tracking On Holding stock, as they were collectively anticipating just under 169 million Swiss francs ($168 million) in net revenue, and an adjusted, per share net loss of 0.08 Swiss francs ($0.08).
On Holding seems to be well on the way to fulfilling its dream of being the top running footwear maker on the planet. Co-founder and executive co-chairman Caspar Coppetti said, "We have supported this positive trend with the launch of a number of key new performance running styles that are seeing significant traction with consumers, both online and with our retail partners."
"In addition, with our Lighting program, we have a dedicated team that is focused on one mission: developing the fastest products possible and working together with our most talented athletes to reach their full potential," he added.
On the back of these encouraging first-quarter figures, On Holding raised its guidance for the entirety of 2022. The company now believes its net sales will top 1.04 billion Swiss francs ($1.04 billion), representing at least 44% growth over the 2021 result.
As for profitability, On Holding is targeting 137 million Swiss francs ($137 million) in earnings before interest, taxes, depreciation, and amortization (EBITDA). It did not provide any net profit guidance.