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On’s revenue disappoints — is currency change to blame?
['Dani James']
Retail Dive - Latest News
That's a miss from analyst’s expectations of growth in the mid-20s on a constant currency basis, per several notes shared with Retail Dive.
On’s net sales grew the most in the Asia-Pacific region at 43.1%, whereas sales in the Americas increased 4.5% for the period.
That compares to its previous net sales outlook of at least 23% and gross profit margin of at least 64.5%.
The street’s missed expectations for On’s sales this quarter may speak to a larger disconnect between analysts and the company’s position.
On’s DTC channel represents “the most premium expression” of the brand, co-founder and co-CEO David Allemann said on a call with analysts Tuesday.