On Holding Reports Q2 Revenue Beat, $41M Net Loss

On Holding AG reported mixed financial results for the second quarter of 2025, showing strong revenue growth but a net loss and earnings per share decline. The company's net sales increased by 38.2% on a constant currency basis to CHF 749.2 million, driven by robust performance in footwear, apparel, and accessories, with direct-to-consumer sales surging 54.3%. Gross profit and adjusted EBITDA also rose significantly, indicating operational improvements, though net income fell to a loss of CHF 40.9 million and EPS dropped to CHF -0.12, highlighting challenges in cost management. The company raised its full-year 2025 revenue guidance to CHF 2.91 billion with expected net sales growth of at least 31% at constant currencies, slightly above previous estimates. Despite the earnings miss, several analysts have expressed bullish views, raising price targets and issuing buy ratings, while the stock has underperformed the market year-to-date. Investors remain attentive to management's commentary on cost control and future earnings expectations during the upcoming earnings call.