Sportswear brand On expects higher profit margin after strong quarterly sales

Impact · against what's priced in

The news is a potential catalyst for ONON because it supports margin expansion and strong sales growth—two factors the market currently discounts. While the company is delivering strong results, the current price reflects a skepticism regarding the ability to reach guided EBITDA levels.

ONON+0.40

Challenges what's priced in

The price assumes

Expanding the free-cash-flow margin toward the 19.5-20.0% adjusted EBITDA guidance

The expectation of higher profit margins directly supports a scenario the market currently declines to pay for, specifically the move toward guided EBITDA levels of 19.5-20.0%.

What ONON's price assumes · Sep 22

• earnings
• ONON
• apparel
• profit margins
• sales
• sportswear

Search tags