Shares of the Swiss sportswear company tumbled over 12% in premarket trading Tuesday after the company issued a softer-than-expected revenue outlook for 2026. The stock drop came despite the company meeting fourth-quarter earnings per share estimates of 0.21 Swiss francs and reporting revenue of 743.8 million francs, which beat the 727.6 million francs consensus. Revenue growth was strong at 30.6% on a constant currency basis. However, investors focused on the forward guidance, which projected net sales growth of at least 23% for 2026. This implies reported revenue of at least 3.44 billion Swiss francs, below the 3.67 billion consensus estimate. The company stated the outlook reflects a higher comparison base following its strong fourth quarter and represents a further elevation of its ambition.

The 2026 revenue guidance shortfall was the primary driver of the stock decline, overshadowing the company's solid fourth-quarter performance. While net sales in key regions like Asia-Pacific surged, the guidance gap created uncertainty about future growth. The company also projected an adjusted EBITDA margin in the range of 18.5% to 19.0% for 2026, with gross profit margin at least 63.0%. These metrics suggest improved profitability but failed to reassure investors concerned about the revenue trajectory. The market reaction underscores the importance of forward guidance in shaping investor sentiment, particularly when expectations are not met.

The stock's 12% premarket drop highlights how a single guidance miss can overshadow strong quarterly results. The company's ability to execute on its elevated ambitions will be critical in regaining investor confidence. The guidance implies a significant revenue increase from the 2025 full-year total of 2.92 billion Swiss francs, but the gap between the company's projection and the consensus remains a key concern for shareholders.