On Holding Raises Full-Year Outlook After Q1 Beat, China Sales Grow Double-Digit
On Holding beat consensus expectations on both revenue and net income in Q1, prompting a raise to its full-year profitability outlook. The company reported double-digit growth in China but saw direct-to-consumer revenue from its own channels miss forecasts.
1. First-Quarter Results
On Holding recorded revenue and net income that exceeded consensus forecasts in the first quarter, driven by continued strength in its product categories and global wholesale channels.
2. China Market Performance
Sales in China grew by a double-digit percentage in Q1, significantly outpacing its performance in other key regions and highlighting robust demand in the local market.
3. Direct-to-Consumer Sales
Revenue from On Holding's direct-to-consumer channels, including its own website and stores, fell short of internal targets and consensus estimates for the quarter.
4. Updated Profitability Outlook
Based on stronger-than-expected top- and bottom-line results, the company raised its full-year profitability outlook, projecting higher operating margins than previously forecast.