On Holding tempered its sales outlook for the year after the running-shoe maker reported lower-than-expected sales in the second quarter.

The Swiss company on Tuesday reported net income of 105 million Swiss francs ($129.5 million) for the quarter. That compares with a loss of CHF40.9 million in the same quarter last year.

Stripping out one-time items, earnings came in at CHF0.35 a share. Analysts polled by FactSet expected adjusted earnings of CHF0.34 a share.

Net sales climbed 13% to CHF850.3 million but missed Wall Street models for CHF878.4 million.

Direct-to-consumer sales jumped 26%, while wholesale-channel sales ticked up 4.8%. The company said it is deliberately managing wholesale sell-in to protect full-price integrity in a promotional marketplace.

Co-Chief Executive David Allemann said the quarterly results show a brand can achieve global scale without compromising its premium brand positioning. "This financial strength allows us to reinvest in what drives our long-term success: authentic brand connections, premium customer experiences, and, above all, continuous performance innovation," he said.

Looking ahead, On Holding now expects net sales of CHF3.47 billion to CHF3.56 billion for the year. The company had previously guided for sales of at least CHF3.51 billion, and analysts are looking for sales of CHF3.56 billion.

Gross profit margin is now projected to reach at least 65%, up from a previous forecast of at least 64.5%. The company additionally reaffirmed its outlook for its margin on adjusted earnings before interest, taxes, depreciation and amortization to be in the range of 19.5% to 20%.

Shares tumbled 16%, to $32.50, in premarket trading.