06:43 AM EDT, 08/13/2024 (MT Newswires) -- On Holding ( ONON ) second-quarter results rose year over year but earnings fell short of market estimates, while the Swiss sports shoe maker reiterated its full-year sales growth outlook.

The company posted adjusted earnings early Tuesday of 0.14 francs ($0.16) per share for the June quarter, up from 0.04 francs the year before, but below the Capital IQ-polled consensus of 0.17 francs. Sales jumped 28% year over year to 567.7 million francs, topping the Street's view of 562.7 million francs.

On's shares listed on the New York Stock Exchange fell more than 8% in premarket activity.

Shoe revenue climbed 27% to 542.5 million francs, while apparel and accessories rose 63% and 24%, respectively. Net sales in the Americas advanced 25% to 370 million francs. Sales in Europe, the Middle East, and Africa increased 22%, while Asia-Pacific surged 74% to 59.2 million francs.

Sales in the direct-to-consumer and wholesale channels rose about 28% each to 209.4 million francs and 358.2 million francs. Gross margin improved to 59.9% from 59.5% in the prior-year quarter, driven by high share of full-price sales and lower freight rates, according to the company.

"We are very pleased to see the ongoing strong momentum of the On brand across channels, regions and products, as evidenced in our very strong results in the first half of 2024," co-Chief Executive Martin Hoffmann said in a statement.

On maintained its 2024 guidance for at least 30% sales growth on a constant currency basis citing ongoing brand momentum and strong demand in the first half of the year. The outlook implies reported sales of at least 2.26 billion francs at current spot rates. The Street is looking for 2.3 billion francs.

The company continues to expect to achieve a full-year gross margin of around 60% and adjusted earnings before interest taxes, depreciation and amortization margin of 16% to 16.5%.

Price: 36.07, Change: -3.48, Percent Change: -8.80