Shares of shoe company On Holding (NYSE: ONON) crumbled on Tuesday after the company reported financial results for the fourth quarter of 2023. The company's numbers were in line with management's guidance but missed Wall Street's expectations. That's why On stock was down 14% as of 11 a.m. ET.
On's management provided guidance for sales, gross profit margin, and margin for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Back in the third quarter, management said investors could expect full-year net sales growth of 46%, a gross margin above 59%, and an adjusted EBITDA margin of 15% at least. The company's financial results met guidance on all three counts.
For 2023, On grew its net sales by nearly 47%, its gross margin was almost 60%, and its adjusted EBITDA margin was over 15%. However, analysts had expected a little more top-line growth in Q4 as well as higher profits.
Source Fool.com