On Holding came into this quarter as a high growth premium sports brand with a rich valuation story, yet the stock just dropped about 20% in a single session to close near $30. That is a sharp reset for a company that had been priced for near flawless execution.

The headline from the earnings is that the core business still printed strong numbers. Net sales reached CHF 850.3m and net income came in at CHF 105m, supported by a gross margin in the mid 60s that many athletic peers would envy. The main question now is why that profitability strength was not enough to support the share price in the short term.

Love On Holding’s premium margins but concerned about paying up for growth that now looks more fragile after this 20% drop? Check out…