On Holding Stock Reaches Record Levels on Strong Sales Performance
Fueling the Surge
Sales are surging as awareness grows. Shares of shoe company On Holding (NYSE: ONON) jumped to new 52-week highs on Tuesday after the company reported financial results for the first quarter of 2024. As of 10:30 a.m. ET, On stock was up 15%.
Direct-to-Consumer Growth
On's Q1 outperformance was driven by direct-to-consumer (DTC) sales. The company's DTC sales were up 49% when adjusted for currency fluctuations and accounted for nearly 38% of its total net sales. DTC sales have higher profit margins as well and On consequently achieved an impressive net profit margin of 18%.
Future Potential
The growth stock has significant potential with a surge in consumer awareness driving sales growth and profitability. Investors may consider On Holding as a high-growth investment opportunity with favorable prospects.
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