1102 ET - On Holding's 2Q SG&A expenses jumped nearly 19%, to 436.3 million Swiss francs ($538.4 million). CFO Frank Sluis says on a call with analysts that the increase was expected, as the running-shoe maker prioritizes direct-to-consumer sales--which increased 26%--the operating costs of which are much higher than wholesale retail. The higher costs are worth it, though, Sluis adds. Direct-to-consumer is On's "most elevated channel, our highest margin channel and the clearest read we have on our brand momentum," he says. "This is the channel where we fully define our brand experience, so to see this powering our business is one of the results we are most pleased with." On Holding tumbles 19%.