ONON's Record Breaking Plunge: A Cautionary Tale for Growth Investors The market reacted sharply to On Holding's (NYSE:ONON) second quarter earnings report, with shares plummeting 20. 29% on August 11.
However, a closer examination of the numbers reveals a more nuanced picture. On Holding has been a poster child for growth investing, scaling premium brands globally without sacrificing exclusivity.
Its direct to consumer sales have grown to 45. 7% of total sales in the second quarter, and its gross margin has climbed to 65. 4%. But investors seem to be prioritizing short term gains over long term discipline.