On Holding reported robust sales and net income growth for the fourth quarter and full year of 2024, indicating a recovery in its profitability. Despite this positive news, the company's share price dropped by 1.85% over the past week, against a backdrop of broader market turbulence. The market fell 2.5% as investors reacted to new U.S. tariffs imposed on key trade partners, which sparked concerns about inflation and economic health. These tariffs, alongside a significant sell-off in the financial and tech sectors, added pressure to stock performances across the board. On Holding's recent price decline could be seen in this context, as the company operates within industries sensitive to trade policy impacts. Although the market remains up 13% over the past year, the current uncertainty surrounding trade measures and the broader economic implications likely influenced investor sentiment towards On Holding.

Dig deeper into the specifics of On Holding here with our thorough analysis report.

Over the last three years, On Holding (NYSE:ONON) has delivered a total shareholder return of 130.82%. This remarkable performance is underscored by a consistent track record of earnings growth, notably a 57.7% increase over the past year, surpassing the luxury industry’s lower growth rates. In 2024, the company's net income reached CHF 242.3 million, up from CHF 79.6 million the previous year, illustrating its enhanced profitability. Furthermore, On Holding's forecasted revenue growth of 20.2% per year positions it well above the broader U.S. market's expected growth rate.

Key initiatives, such as the collaboration with Loop Industries in May 2024 for sustainable product development, bode well for future market positioning. Additionally, strategic agreements dating back to 2022 focused on enhancing product recyclability underscore the company’s commitment to sustainable practices. Despite current valuation metrics indicating a high Price-To-Earnings Ratio, On Holding surpassed the US Luxury industry, which saw a 8.8% decline over the past year, reinforcing its robust market standing.

• Learn how On Holding's intrinsic value compares to its market price with our detailed valuation report.
• Explore the potential challenges for On Holding in our thorough risk analysis report.
• Invested in On Holding? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:ONON.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com