Tennis icon Roger Federer saw his personal net worth dip following a sharp share price drop for Swiss athletic apparel maker On, according to market reports covering the company’s financial results. On shares fell by roughly 20 percent to 30.12 US dollars, reducing the value of the athlete’s stake in the brand he backs and advises.
Second-Quarter Revenue Growth Misses Wall Street Targets
According to financial filings, On reported second-quarter revenue of 850.3 million Swiss francs, marking a 13.5 percent increase, or 21.6 percent on a constant-currency basis. Despite the double-digit growth, the figures missed analyst expectations of at least 881 million francs, according to market consensus data. The earnings miss drove the company’s stock down to its lowest level since February 2024.
Financial institutions responded to the performance with widespread price target adjustments while maintaining differing views on the brand’s long-term resilience. Raymond James downgraded the stock from Strong Buy to Outperform, lowering its target to 38 US dollars. BTIG reduced its target from 70 to 60 US dollars while keeping a Buy rating, and BofA Securities lowered its target from 52 to 46 US dollars while also maintaining a Buy recommendation. Additional target cuts came from Telsey down to 43 US dollars, Stifel to 41 US dollars, and Williams Trading to 32 US dollars.
US Wholesale Pressures and Margin Resilience
According to BofA Securities, high promotional activity in the United States wholesale channel significantly hampered sell-in figures. While the US market accounts for less than half of total group sales, wholesale operations represent over half of total revenue, amplifying the impact of the domestic slowdown. BofA Securities projected that operational revenue growth will sit roughly 40 percent below the levels anticipated for the 2025 fiscal year.
Conversely, analysts at BTIG highlighted positive momentum within the company’s direct-to-consumer operations. The direct-to-retail and e-commerce segments exceeded regional expectations, driven by a higher proportion of full-price sales despite broader market discount pressures. Retailers have also shown strong interest in the new Cloudsurfer-3 technology line slated for specialty retail release in October.
Despite operational headwinds, On maintained a gross margin of nearly 65 percent, surpassing figures from the previous year. Company leadership indicated that wholesale orders are intentionally kept below actual sell-through volumes to carefully manage inventory ahead of a planned technology transition across multiple model lines scheduled for 2027. Following the second-quarter results, On revised its full-year revenue outlook downward as executives work to stabilize the critical US wholesale channel.
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