Shares for On Holding AG were up nearly 8 percent on Tuesday morning after the Swiss athletic company said it reached record quarterly net sales in its most recent earnings report.
The company also raised its guidance, which is in contrast to many footwear firms that have scrapped guidance altogether amid uncertainty over tariffs and the global economy.
In the first quarter of fiscal 2025, On saw net sales increase 43 percent to 726.6 million Swiss francs, compared to 508.2 million Swiss francs in Q1 2024. Net income, however, decreased by 38.0 percent in Q1 to 56.7 million Swiss francs from 91.4 million Swiss francs the same time last year.
The company said that the performance this quarter was ahead of expectations and was driven by On’s multi-channel strategy, including continued momentum in the direct-to-consumer channel and strong demand from wholesale partners.
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On noted that DTC net sales increased by 45.3 percent to 276.9 million Swiss francs, while net sales through the wholesale sales channel increased by 41.5 percent to 449.7 million Swiss francs.
By region, On said that net sales in Europe, Middle East and Africa grew 33.6 percent to 168.6 million Swiss francs, in the Americas increased 32.7 percent to 437.4 million Swiss francs, and in Asia-Pacific it jumped 130.1 percent to 120.6 million Swiss francs.
And by category, net sales from shoes increased 40.5 percent to 680.9 million Swiss francs, apparel was up 93.1 percent to 38.1 million Swiss francs, and accessories jumped 99.2 percent to 7.6 million Swiss francs in the first quarter.
Caspar Coppetti, co-founder and executive co-chairman of On, said in a statement that the company’s Q1 results “reflect the strong momentum of our brand across all channels, regions and product categories.”
“Looking into the second quarter and beyond, we are energized by the global traction and cultural resonance of On as a head-to-toe sportswear brand,” Coppetti said. “As we solidify our premium positioning in the marketplace, we will continue to focus on what differentiates us — combining performance and design with a constant thirst for innovations big and small.”
Martin Hoffmann, co-chief executive officer and chief financial officer of On, added that Q1 sales were “further elevated” by product launches like the Cloud 6 and the Cloudsurfer 2.
“We are thrilled to see that the continued growing strength of our DTC channel as well as improved operational execution across our supply chain have further contributed to a significant profitability expansion,” Hoffmann said.
Following a strong start to the year, the company is raising its full-year 2025 net sales guidance and now expects to reach at least 28 percent growth on a constant currency basis, equivalent to 2.86 billion Swiss francs at current spot rates. The company added that it now expects a gross profit margin in the range of 60.0 percent and 60.5 percent for the full year, and an adjusted EBITDA margin in the range of 16.5 percent and 17.5 percent.
The company further noted that its guidance includes the additional U.S. tariffs in place during the current 90-day pause on the country-specific reciprocal tariffs.
“As we look ahead, we are confident that our commitment to bold innovation, operational excellence, and elevated consumer experiences will drive market share gains and further cement On’s global premium position, allowing us to navigate the higher levels of planning uncertainty in today’s market environment,” Hoffmann added.
