CNBC’s Jim Cramer said Tuesday that he remains a fan of On Holding (ONON), despite Wall Street’s sour response to the Swiss sportswear firm’s second-quarter earnings.
Shares of On Holding plunged 17% Tuesday, to under $29 each. Last week, On Holding stock closed at a 2023 high of $36.51 a share.
Cramer shrugged off foreign-exchange headwinds facing On Holding, instead focusing on underlying growth trends in the business. “If you look through the Swiss franc, you realize they’re just smoking hot,” Cramer said on “Squawk on the Street.”
“It is the fastest growing sneaker company, not Nike (NKE),” he added.
On Holding — which makes running shoes and other athletic apparel — said Tuesday that revenue in the second quarter grew 52.3% year-over-year, to 444.3 million Swiss francs, including the foreign-exchange impact. On a constant-currency basis, On Holding sales grew 60% compared with the same period a year prior.
Elsewhere, Club sportswear name Foot Locker (FL) is set to report second-quarter results on Aug 23.
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
