Investing.com -- On Holding shares fell sharply after the Swiss sportswear maker’s second-quarter revenue fell short of expectations.

The company reported second-quarter earnings per share of CHF 0.31, beating the analyst estimate of CHF 0.29. Revenue rose 21.6% on a constant currency basis to CHF 850.3 million, but missed the CHF 881.4 million consensus estimate.

The company’s shares sank more than 13% in U.S. premarket trading by 05:12 ET (09:12 GMT).

Growth in the quarter was led by exceptional strength in On’s direct-to-consumer channel, which grew 34.3% on a constant currency basis, exceeding expectations in every region. Asia-Pacific again contributed more than 20% of global net sales, powered by momentum in Japan, South Korea and Greater China. Apparel net sales surged 56.2% on a constant currency basis.

Profitability improved, with gross profit margin reaching 65.4%, up 3.9 percentage points year-over-year, even as the company fully absorbed higher U.S. import tariffs and excluded any tariff refunds. Adjusted EBITDA margin rose to 19.8% from 18.2% a year earlier, with adjusted EBITDA totaling CHF 168.1 million.

For the full year, On expects net sales growth in the low-20% range on a constant currency basis, with the DTC channel expected to significantly outperform wholesale in the second half. At current spot rates, that implies net sales of CHF 3.47 billion to CHF 3.56 billion, versus a consensus estimate of CHF 3.56 billion.

The company expects gross profit margin of at least 65.0% and adjusted EBITDA margin in the range of 19.5% to 20.0%.