Roger Federer Loses Billionaire Status After On Shares Plunge

Tennis great Roger Federer has fallen below billionaire status after shares of On Holding, the Swiss sportswear company in which he owns a stake, dropped sharply Tuesday following a quarterly sales miss.

Federer’s estimated net worth fell to $952.4 million by 12:30 p.m. Tuesday, a decline of at least $52 million as On Holding shares sank about 19% during the session.

On reported second-quarter net sales of 850.4 million Swiss francs, or approximately $1.04 billion. While revenue increased 13% from the same period a year earlier, it came in below the 878.4 million francs, or about $1.08 billion, analysts had expected, according to the Wall Street Journal.

Federer owns approximately 2.5% of On Holding, including roughly 296 million Class A shares and 341 million Class B shares. The investment played a significant role in pushing the former tennis champion into billionaire territory last year.

Despite the steep decline in the stock, On reported significantly improved profitability. Net income reached 105 million Swiss francs, equivalent to about $129.4 million, compared with a net loss of 40.9 million francs, or $50.4 million, during the same quarter a year earlier.

The company’s gross profit margin also improved to 65.4%, up from 61.5% a year earlier. On subsequently increased its full-year gross margin forecast to 65%.

Federer remains within reach of returning to billionaire status. He retired from professional tennis in 2022 after a 24-year career that generated approximately $131 million in prize money and included 20 Grand Slam championships.

His wealth has also been supported by lucrative endorsement agreements, including his partnership with Uniqlo, as well as his investment in On Holding. Federer became a co-owner of the company in 2019, and On has described him as a “close partner to our founders.”