Shares of On Holding AG (NYSE: ONON) plummeted 20.53% in pre-market trading on Tuesday after the sportswear brand reported second-quarter net sales that fell short of Wall Street expectations and tempered its full-year revenue growth outlook.

The company posted Q2 net sales of CHF 850.3 million, missing the analyst consensus estimate of approximately CHF 878 million. While adjusted earnings per share of CHF 0.35 narrowly beat the CHF 0.34 forecast, the revenue shortfall was primarily driven by deliberate restraint in the wholesale channel. Management is actively managing wholesale sell-in to preserve its full-price selling strategy amid an industry-wide promotional environment, a move that prioritizes brand integrity over near-term volume growth. Sales growth in the core Americas market slowed to 13% on a constant currency basis, down from 17% in the prior quarter, intensifying concerns about momentum in its largest region.

Adding to the selloff, On Holding moderated its full-year 2026 outlook, now expecting constant currency net sales growth in the low-20% range, down from its prior guidance of at least 23%, implying absolute net sales of CHF 3.47 billion to CHF 3.56 billion. Jefferies analysts noted that moderating global wholesale trends, rising SG&A expenses, and declining core customer retention rates could sustain near-term pressure on the stock. William Blair characterized the quarterly results as a broad-based miss, hurt by foreign exchange impacts and soft wholesale trends, while noting that the sales miss flowed through to the bottom line.