Why On Stock Dropped 10% in April
Shares of On Holdings (NYSE: ONON) stock fell 10% in April, according to data provided by S&P Global Market Intelligence. Investors weren't thrilled with its fourth-quarter results, and as inflation persists and interest rate cuts are nowhere in sight, the overall market was down.
On reported its 2023 fourth-quarter results in March. Year-over-year revenue growth surpassed guidance at 46.6%, or 55% currency neutral, for the full year. On has a multichannel model, and although it has a strong wholesale business, direct-to-consumer sales increased 51%. On is developing its brand presence, and the high direct-to-consumer growth indicates loyal customers who love the brand.
As for profitability, it maintained its high gross margin at 59.6%, up from 56% in 2022. Net income rose 37.9% year over year.
Source Fool.com
