On Holding Ventures Into Hong Kong Amid Weaker Sales In China: Report
Portfolio Pulse from Shivani Kumaresan
On Holding AG (NYSE:ONON) is set to open its first store in Hong Kong at H Queen's in Central District, amidst declining sales in China. The move is part of the company's strategy to expand and manage economic uncertainties, with Hong Kong's lower rents attracting luxury brands. Despite a 21.9% year-on-year sales growth in Q4 FY23 to CHF 447.1 million, On Holding missed analyst expectations. Shares of ONON saw a slight increase of 0.17% in premarket trading.
March 20, 2024 | 12:24 pm
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On Holding AG is opening its first store in Hong Kong, aiming to counteract weaker sales in China. The company's Q4 FY23 sales grew by 21.9% year-on-year but fell short of expectations.
The opening of a new store in Hong Kong represents a strategic move to diversify On Holding's market presence and mitigate the impact of declining sales in China. The slight premarket share price increase indicates a positive but cautious investor response to the expansion and earnings report. The missed sales estimate may temper expectations, but the expansion strategy could bolster investor confidence in the company's long-term growth.
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