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On Holding AG Q2 2025 Earnings Highlights

$ONON (-2,71%)

🔹 EPS: (CHF0.09) 🔴 (Est. CHF0.14)

🔹 Revenue: CHF749.2M 🟢 (Est. CHF703.8M); +32% YoY (+38.2% CC)

FY25 Guidance (Raised)

🔹 Revenue: CHF2.91B 🟡 (Est. CHF2.93B); ≥+31% CC (prev. ≥+28%)

🔹 Gross Margin: 60.5–61.0% (prev. 60.0–60.5%)

🔹 Adj. EBITDA Margin: 17.0–17.5% (prev. 16.5–17.5%)

Regional Sales (YoY)

🔹 EMEA: CHF197.8M; +42.9% (+46.1% CC)

🔹 Americas: CHF432.3M; +16.8% (+23.6% CC)

🔹 Asia-Pacific: CHF119.2M; +101.3% (+110.9% CC)

Product Sales (YoY)

🔹 DTC: CHF308.3M; +47.2% (+54.3% CC) – 41.1% of total sales

🔹 Wholesale: CHF441.0M; +23.1% (+28.8% CC)

🔹 Shoes: CHF704.9M; +29.9% (+36.0% CC)

🔹 Apparel: CHF36.7M; +67.5% (+75.5% CC)

🔹 Accessories: CHF7.7M; +133.3% (+143.2% CC)

Other Metrics:

🔹 Net Income: CHF(40.9)M vs CHF30.8M last year

🔹 Gross Profit: CHF460.8M; +35.4% YoY

🔹 Gross Margin: 61.5% (+160 bps YoY)

🔹 Adjusted EBITDA: CHF136.1M; +50% YoY

🔹 Adjusted EBITDA Margin: 18.2% (+220 bps YoY)

Management Commentary

🔸 “Our Q2 results leave no doubt: On is playing the long game... building a resilient brand for decades ahead.” – Co-Founder David Allemann

🔸 “Premium positioning is coming to life across every consumer touchpoint… strong conviction in our strategy.” – CEO & CFO Martin Hoffmann

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Marcelo@Marcelo-80

On Holding raised its full-year sales forecast on Tuesday as its focus on brand advertising boosts demand for athletic apparel and footwear, sending the company's shares up about 10 percent in premarket trading.

The Swiss company has captured market share in the U.S. from rivals such as Adidas and Nike by trying to appeal to younger customers through high-profile collaborations and product innovation.

The Roger Federer-endorsed company, which is considered a premium brand, raised prices by around 10 dollars in July, mainly on lifestyle products.

"We are aware that we want to be the most premium brand, and therefore we also have to lead the way in the premium position when it comes to prices," said CEO Martin Hoffmann.

"But now, looking ahead to the rest of the year, we don't need more prices," he added.

On has launched new products, including the Cloudsurfer Max shoes, which retail for $180, as well as its ongoing partnerships with actress Zendaya and musician FKA Twigs.

The company faces a 20 percent tariff on goods from Vietnam, a key insider for its finished products.

"We've been paying 20 percent tariffs on most of our imports into the U.S., and with the latest numbers, those tariffs are going up to 40 percent for Vietnam," Hoffman said.

On expects full-year 2025 net sales of at least CHF 2.91 billion ($3.60 billion), compared to previous expectations of at least CHF 2.86 billion.

The company forecasts an annual adjusted earnings margin before interest, taxes, depreciation and amortization in the range of 17% to 17.5%, compared to the previous expectation of 16.5% to 17.5%.

For the second quarter ended June 30, sales rose 32% to CHF 749.2 million, beating estimates of CHF 705.3 million, according to data compiled by LSEG.

Net sales in the footwear segment rose by 29.9%, while sales in the apparel segment increased by 75.5%.

However, due to the weaker dollar, On reported an adjusted loss per share of CHF 0.09, compared to an estimated profit of CHF 0.21.

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