Swiss sneaker maker On Holding (ONON) raises 2025 outlook as direct sales, product hype drive growth
Shares of On Holding jumped nearly 12% Tuesday after the Swiss athletic footwear company reported a blowout fiscal first quarter, marked by a 43% year-over-year increase in revenue to CHF726.6 million ($863.5 million). The results easily beat Wall Street expectations and prompted the company to lift its full-year sales outlook despite rising concerns over global trade uncertainty.
Investors cheered the momentum, pushing ONON stock to its best day in months. The company matched earnings estimates at CHF0.21 per share while surpassing revenue forecasts by nearly CHF43 million. Gross profit margin edged up to 59.9% from 59.7%, and On maintained its position as one of the few high-growth names in the athletic apparel sector during a time when competitors like Nike and Adidas face slower consumer demand.
“The strong momentum of our brand across all channels, regions and product categories reflects our vision to be the most premium global sportswear brand,” said co-founder and Executive Co-Chairman Caspar Coppetti.
Investors cheered the momentum, pushing ONON stock to its best day in months. The company matched earnings estimates at CHF0.21 per share while surpassing revenue forecasts by nearly CHF43 million. Gross profit margin edged up to 59.9% from 59.7%, and On maintained its position as one of the few high-growth names in the athletic apparel sector during a time when competitors like Nike and Adidas face slower consumer demand.
“The strong momentum of our brand across all channels, regions and product categories reflects our vision to be the most premium global sportswear brand,” said co-founder and Executive Co-Chairman Caspar Coppetti.
Direct-to-Consumer Channel Powers Growth
A key driver behind On's blowout quarter was its expanding direct-to-consumer (DTC) business. DTC sales surged 45.3% year over year to CHF276.9 million, now accounting for 38.1% of total sales. The performance exceeded internal expectations, with both e-commerce and retail stores delivering strong results. The company noted particularly strong performance in its Tokyo location, which surpassed even its flagship London store.
Wholesale remained robust as well, growing 41.5% to CHF449.7 million. On credited strong global demand for the new Cloud 6 running shoe, the company’s largest product launch to date, and the continued success of its Cloudsurfer 2 line.
The product buzz has been bolstered by celebrity endorsements, including high-profile names like Zendaya, helping On build brand cachet in a competitive market.
A key driver behind On's blowout quarter was its expanding direct-to-consumer (DTC) business. DTC sales surged 45.3% year over year to CHF276.9 million, now accounting for 38.1% of total sales. The performance exceeded internal expectations, with both e-commerce and retail stores delivering strong results. The company noted particularly strong performance in its Tokyo location, which surpassed even its flagship London store.
Wholesale remained robust as well, growing 41.5% to CHF449.7 million. On credited strong global demand for the new Cloud 6 running shoe, the company’s largest product launch to date, and the continued success of its Cloudsurfer 2 line.
The product buzz has been bolstered by celebrity endorsements, including high-profile names like Zendaya, helping On build brand cachet in a competitive market.
Innovation, Leadership Changes, and a Tariff Challenge Ahead
Despite macroeconomic pressures, On remains bullish. The company raised its full-year revenue growth forecast to "at least 28%" on a constant-currency basis, up from a previous 27%. That optimism comes as the company prepares to test and refine LightSpray, a next-generation manufacturing process that creates a shoe in three minutes with no glues or seams. The breakthrough tech, which slashes waste and emissions, will be key in sustaining On’s premium positioning.
Leadership transitions are also underway. Co-CEO Marc Maurer is set to depart on July 1, leaving Martin Hoffmann, currently both co-CEO and CFO, to take over as sole chief executive. Hoffmann assured investors that On’s focus on “bold innovation, operational excellence, and elevated consumer experiences” will continue to steer the company forward, even amid an unpredictable global landscape.
Still, the company struck a cautious tone around tariffs and currency volatility. It trimmed the lower end of its adjusted EBITDA margin guidance to 16.5% from 17%, citing “higher levels of planning uncertainty” due to shifting global trade policy and weakening foreign currencies against the Swiss Franc.
Despite macroeconomic pressures, On remains bullish. The company raised its full-year revenue growth forecast to "at least 28%" on a constant-currency basis, up from a previous 27%. That optimism comes as the company prepares to test and refine LightSpray, a next-generation manufacturing process that creates a shoe in three minutes with no glues or seams. The breakthrough tech, which slashes waste and emissions, will be key in sustaining On’s premium positioning.
Leadership transitions are also underway. Co-CEO Marc Maurer is set to depart on July 1, leaving Martin Hoffmann, currently both co-CEO and CFO, to take over as sole chief executive. Hoffmann assured investors that On’s focus on “bold innovation, operational excellence, and elevated consumer experiences” will continue to steer the company forward, even amid an unpredictable global landscape.
Still, the company struck a cautious tone around tariffs and currency volatility. It trimmed the lower end of its adjusted EBITDA margin guidance to 16.5% from 17%, citing “higher levels of planning uncertainty” due to shifting global trade policy and weakening foreign currencies against the Swiss Franc.
A Market Standout in a Cautious Sector
While many athletic and apparel brands struggle to reignite growth, On continues to gain market share. The combination of premium positioning, innovation, and an increasingly loyal customer base gives the company pricing power that could help it weather cost headwinds tied to trade and logistics.
With more launches on the horizon—such as the Cloudsurfer Max, Cloudflow 5, and the Cloudboom Max super shoe—On looks well-positioned to maintain its upward trajectory through the rest of 2025.
In a challenging environment for retail and sportswear, On Holding has managed to sprint ahead of the pack.
While many athletic and apparel brands struggle to reignite growth, On continues to gain market share. The combination of premium positioning, innovation, and an increasingly loyal customer base gives the company pricing power that could help it weather cost headwinds tied to trade and logistics.
With more launches on the horizon—such as the Cloudsurfer Max, Cloudflow 5, and the Cloudboom Max super shoe—On looks well-positioned to maintain its upward trajectory through the rest of 2025.
In a challenging environment for retail and sportswear, On Holding has managed to sprint ahead of the pack.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!