On Holding shares plunge, impacting Roger Federer's net worth

Shares of Swiss sportswear brand On Holding plunged as much as 22 percent following second-quarter earnings that missed Wall Street revenue estimates. The company reported net sales of 850.3 million Swiss francs, falling short of the 878.4 million Swiss francs projected by analysts. While the company saw a 13 percent year-over-year increase in sales and reported a net profit of 105 million Swiss francs, investors reacted to the revenue miss and a lowered growth outlook.

The stock volatility significantly impacted tennis legend Roger Federer, who holds an estimated 2.5 to 3 percent stake in the company. According to Forbes, Federer’s net worth dropped by at least 52 million dollars, falling from billionaire status to approximately 952 million dollars.

On Holding executives noted that the company is prioritizing profitability and direct-to-consumer sales over volume to protect brand integrity and avoid heavy discounting. Despite the stock decline, the company raised its full-year gross profit margin outlook to at least 65 percent.