Here’s how much Roger Federer is losing as On Holding says it is being disciplined on price
Apparel maker On Holding saw its shares slump in premarket trade as the Zurich-headquartered, U.S.-listed company guided to weaker-than-expected sales for the year.
On Holding's weaker-than-expected sales guidance has led to a decline in its shares, with investors reacting to the news that the company, known for its high-end running shoes and apparel, is taking a disciplined approach to pricing. This move comes as the company faces increased competition in the market, including from established brands and newer entrants.
The impact of this approach is being closely watched by investors, particularly given On Holding's high-profile partnerships, including with tennis star Roger Federer, who is a significant shareholder in the company. While the company's commitment to disciplined pricing may help it maintain margins, it also raises questions about its ability to drive growth in a highly competitive market.
To watch next: On Holding's sales performance in the coming quarters, and how its pricing strategy affects its market share and revenue growth. Additionally, investors will be monitoring the company's partnerships, including with Federer, to see if they continue to drive brand awareness and sales. The company's ability to balance pricing discipline with growth ambitions will be a key theme for investors in the coming months.
Originally reported by marketwatch.com. Trade-News adds analysis for finance & markets readers.