Cost of sales is growing less rapidly than revenues which is good for a sportswear company as it means they are able to optimize costs (be it shipping or manufacturing) while demand & sales grow. Expenses are a different story, growing more rapidly than revenues for the quarter & semester - in terms of value as it is flat-ish in terms of percentage of revenues. It is normal as these include marketing, and a sportswear company needs to grow its marketing costs to build brand awareness. It’s simply not perfect to see them growing more rapidly than revenues but it still is a necessary step, for now at least - hence the quotes on “issue.” These expenses already yielded returns and should continue to do so. “we further boosted them with significant marketing investments across all our channels. And it's clearly working. The brand is maintaining its incredible momentum based on direct customer feedback, continued sell through strength, our brand awareness tracker, a strong increase in Google searches and millions of media impressions.” The foreign exchange losses are also shown in this statement, and is what I detailed earlier about currency swaps - you can see that On is losing a few million on this, which makes a difference. Guidance. The guidance is good, in line with my personal expectations, with FY-24 growing 30% in constant currency, as it is impossible to predict the future exchange rates. We’d be talking about 2.26B CHF of revenues at the end of the year while staying profitable with a gross margin around 60%, and a net margin probably around today’s or a bit higher - between 7% & 10%. A rapid word on the consumer strength, on which On is pretty optimist on. “So we I think we confirmed an already strong guidance and we wouldn't do that if we didn't have confidence in the consumer. We see very positive signs over the last couple of weeks.” On is a premium brand, selling expensive products, and the weakness in the consumer observed by many companies or banks over the last months came from the lower-income households, which aren’t really On’s target. I wouldn’t be surprised to see On continue thriving as long as higher-income households’ buying power isn’t too much impacted. My Take. As I said at the beginning of the write-up: a correct quarter. Nothing shining, and management is doing what it should do to grow brand awareness & revenues for the future. This quarter just confirms the good trajectory on which the company already is. I stick to what I said in terms of valuation as well - just keep in mind every number is in CHF here, nothing in dollars except the stock price which isn’t available in CHF and is converted to the currency with today’s exchange rate. Expectations didn’t change. The company is planning to grow 30% YoY FY-24 and this seems achievable as growth is accelerating, but I prefer to stay conservative in my assumptions as it will still be hard to keep this growth for three years straight. Between 24% & 27% is very doable - assuming we won’t hit a recession, and the proper average price to accumulate would still be around $30-$34 with a correct margin of safety. As always, this is considering today’s data; things change, and I’ll change if I need to. As of now… I plan to continue buying as long as my average price sticks around $30/$32.

[Amazon Q2-24 | Detailed Review] I released yesterday my detailed Q2-24 $AMZN review to subscribers and will link it on the first comment below if you're interested. We covered. - Amazon growth & margins. - Management perfect excecution. - The AWS beast. - Valuation & price traget. For free, just here👇.