On Holding tumbles ~22% after Q2 miss, trims full-year growth outlook

On Holding AG's stock fell about 22% after its second-quarter revenue missed estimates and the company cut its full-year net sales growth outlook to the low-20% range (CC). Q2 EPS was CHF 0.31 vs. CHF 0.29 expected, while revenue was CHF 850.3 million vs. CHF 881.4 million consensus. Growth was led by a 34.3% CC increase in direct-to-consumer, Asia-Pacific accounting for >20% of sales, and apparel up 56.2% CC. Gross margin rose to 65.4% and adjusted EBITDA margin to 19.8%. For the year, gross margin guidance was raised to at least 65% and EBITDA margin to 19.5-20.0%, with net sales guidance of CHF 3.47-3.56 billion, below a Citi consensus and signaling pressure into the second half.