On Holding AG Shares Drop After Missing Q2 Sales Estimates

On Holding AG shares fell as much as 17% in New York premarket trading after the company reported second-quarter net sales of 850.3 million Swiss francs, missing analyst estimates of 881.4 million.

The Swiss sneaker brand attributed the results to a strategic decision to avoid discounting older shoe models in the promotional US market before releasing new product updates. Because of this, the company slightly lowered its annual sales growth forecast to the low 20% range, down from a previous target of at least 23%.

Despite the sales miss, the company increased its annual gross profit margin goal to at least 65% and reported strong growth in its apparel business and the Asia-Pacific region. Co-CEO David Allemann stated the company's vision is to remain a premium global sports brand, prioritizing price integrity over short-term volume through markdowns.