On's weak revenues drag down Adidas, Puma and Nike shares

Shares in Adidas, Puma and Nike fell noticeably on Tuesday afternoon. The market cited the weak revenue performance of Swiss trainer manufacturer On Holding.

On Holding's shares plummeted by 16.4 percent to 32.41 US dollars in pre-market US trading. Nike's share price was also affected, falling by 1.1 percent to 41.64 dollars. In Germany, Adidas shares dropped by 3.1 percent to 162.25 euros at the bottom of the Dax. Puma shares lost 2.1 percent to 26.60 euros on the MDax.

This brings Adidas's year-to-date loss to 4 percent. Meanwhile, Puma's share price gain narrowed to 19 percent. Nike's annual loss is now expected to increase to almost 36 percent, and On's to 30 percent.

The US-listed company On Holding had previously reported lower-than-expected revenue for the second quarter. The running shoe manufacturer also cut its annual revenue forecast.

“The global wholesale business, particularly in the US, weakened in the second quarter,” commented analyst Randal Konik from the investment bank Jefferies on On's figures. He added that sales and administrative costs increased simultaneously to steer new customers towards direct-to-consumer channels as customer loyalty is declining.