Aug 13 (Reuters) - On Holding ( ONON ) beat analysts'

estimates for second-quarter sales on Tuesday, as strong demand

from customers looking for trendy products helped the company

sell its shoes and apparel at full prices in the U.S. and

Europe.

Roger Federer-backed On, which went public in 2021, has

edged out sportswear giant Nike ( NKE ) for shelf and online space at

retailers like Dick's Sporting Goods and Foot Locker ( FL )

in the running shoe category.

Customers have been more than willing to spend on

comfortable and new products such as those made by On, New

Balance and Hoka, even as they shun big-ticket items against the

backdrop of higher-for-longer interest rates.

"We see a high share of full price sales and also I think we

are very well-positioned on the inventory side, which doesn't

post a lot of pressure ... for us it is always the full price

business it's the meaningful business in the long term," Martin

Hoffmann, co-CEO and CFO of On, told Reuters.

On, whose shares have risen nearly 47% so far this year, has

been building on this demand. It launched products in the

running and trail categories such as Cloudmonster Hyper and

Cloudrunner 2, released new colors of existing products

including Cloudstratus 3 and signed a multi-year partnership

with actress Zendaya in the second quarter.

Still, On reiterated its annual net sales expectations of at

least 30% growth, reflecting an impact from low stock and supply

challenges at its Atlanta distribution centers that resulted in

extended delivery times.

"We have experienced shipping delays, but we also

experienced out-of-stock situations towards our DTC channel. And

while we posted a record quarter, it could have been even

stronger if we would not have had those impacts," Hoffmann said.

The company's second-quarter sales rose nearly 28% to 567.7

million Swiss francs ($655 million), compared with LSEG

estimates of 560.9 million Swiss francs.

On posted adjusted profit of 0.14 Swiss francs per share.

Analysts were expecting the company to report 0.16 Swiss francs

per share.

($1 = 0.8664 Swiss francs)

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by

Sriraj Kalluvila)