'Tennis Emperor' Federer falls from billionaire ranks after $70 billion loss in a day

Tennis icon Roger Federer is no longer a billionaire after a sharp decline in the stock of his sportswear company, On Holding, erased over $50 million from his net worth in a single day. The Swiss athlete's fortune now stands below $1 billion.

The drop occurred after On Holding announced its second-quarter results, revealing net sales of $850.4 million Swiss francs (approximately $1.04 billion). While this represented a 13% increase from the previous year, it fell short of the market's expectation of $878.4 million Swiss francs, triggering a nearly 19% plunge in the company's stock price.

Federer, who holds an estimated 2.5% stake in On Holding, saw his net worth decrease to an estimated $952.4 million. This stake was instrumental in his ascent to billionaire status last year. However, the company's financial performance was not entirely negative. On Holding did achieve a net profit of 105 million Swiss francs for the quarter, a significant improvement from a net loss of 40.9 million Swiss francs in the same period last year. Gross profit margin also saw an increase to 65.4% from 61.5% year-over-year.

Federer retired from professional tennis in 2022 after a storied 24-year career, during which he amassed approximately $131 million in prize money. Post-retirement, he has continued to grow his wealth through endorsement deals, including with Uniqlo, and his investment in On Holding, which he joined as a co-owner in 2019. The company describes him as a "close partner to the founders."