On Holdings boasts record revenue in latest earnings beat

The Yahoo Finance Live team breaks down On Holdings earnings report, the company's projected revenue growth for the second half of the year, and On Holdings stock movement.

Video transcript

JOSH SCHAFER: Do want to take a look at another stock here, On Holding. Shares of the rising footwear brand sliding today despite an upbeat earnings report. The company posting sales up 78% from the year prior and boosting its full-year sales guidance. But it is expecting revenue growth to slow in the second half of the year compared to the first half of the year.

So they saw revenue growth in the mid-50s for the first half of the year. They're projecting closer to the mid-30s in the second half of the year. Still, mid-30s revenue growth--

AKIKO FUJITA: Yeah.

JOSH SCHAFER: Pretty impressive.

DIANE KING HALL: I know.

JOSH SCHAFER: And you're talking-- but I think, really, what happened here is, you're talking about a stock that basically doubled to start the year.

DIANE KING HALL: Yes.

JOSH SCHAFER: And that's what a lot of analysts were pointing to, Diane, as far as why you might have saw a downward move there.

DIANE KING HALL: Yeah, I know. I still was surprised by the dramatic slide today. I mean, it's certainly not-- you know. It's not sprinting today. I had to throw in a pun.

AKIKO FUJITA: You had to put in the pun there.

DIANE KING HALL: I had to, Akiko. I'm sorry. I had to, you know. But I mean, I see the shoes everywhere. And though we've seen some-- some of the athleisure lose some steam from the pandemic, On still it seems to be on. So I was surprised that how-- how Wall Street dinged it today.

ALEXANDRA CANAL: And Wall Street overall, the analysts at least, they're very bullish on this company moving forward. We had a note from Wedbush that said, quote, "On is one of the strongest growth stories in our space with great products that are gaining brand awareness, gaining new points of distribution, and selling predominantly at full price." But guys, I think it might be a little uncool here because I don't really know this brand.

DIANE KING HALL: Are you serious?

ALEXANDRA CANAL: I'm-- I'm literally serious.

DIANE KING HALL: Allie.

AKIKO FUJITA: So-- so--

DIANE KING HALL: How do you not know On? They're everywhere.

ALEXANDRA CANAL: I think I literally felt really not cool.

DIANE KING HALL: Akiko, jump in.

ALEXANDRA CANAL: [INAUDIBLE].

JOSH SCHAFER: Off-brand. Off-brand.

AKIKO FUJITA: Allie, do you-- Allie is not a runner. Can I assume that?

ALEXANDRA CANAL: I'm not a runner. I'm not a runner.

AKIKO FUJITA: OK, and I'm not either because I have heard this from runners who say, it's just-- forget the style of the shoe. It apparently is the best shoe to go running in, that it's comfortable.

ALEXANDRA CANAL: Hmm.

DIANE KING HALL: So--

AKIKO FUJITA: I have never tried them, so we're in the same--

DIANE KING HALL: Runners do like them. I-- I've tried on, I think, one pair, you know. But I like Brooks better.

ALEXANDRA CANAL: I wear HOKAs.

DIANE KING HALL: Yes, those are-- yes.

JOSH SCHAFER: The Roger Federer-- the Roger Federer shoes are becoming kind of office wear too. So it'll be interesting to see if [INAUDIBLE].

ALEXANDRA CANAL: Well, I got to go and get myself a pair.

AKIKO FUJITA: OK, we'll both-- we'll both make a-- make an appointment of that, Allie. But-- but interesting to-- to see that stock move today because it does feel like investors are looking at any kind of sign, any hint, of a pullback. That's where we've seen the pressure build, not just on On Holding but on other companies as well, because we're still trying to get a pace of-- or a sense of where the retail mindset is, or the consumer mindset is.