Key Takeaways
- On Holding exceeded Q1 projections with 831.9 million Swiss francs in revenue, representing a 14.5% year-over-year increase
- Adjusted earnings per share reached 0.37 francs, surpassing the 0.27 franc consensus
- Full-year gross profit margin guidance increased to a minimum of 64.5%, elevated from the previous 63% forecast
- The Asia-Pacific region delivered the strongest performance with net sales surging 44.4%; China showed high-double-digit expansion
- Founders David Allemann and Caspar Coppetti assumed co-CEO roles, succeeding Martin Hoffmann
Despite crushing first-quarter estimates on both the top and bottom lines while elevating its annual profitability forecast, On Holding shares reversed early gains. After jumping more than 6% in premarket trading, ONON stock retreated approximately 3.2% during regular trading hours.
Revenue reached 831.9 million Swiss francs, marking a 14.5% increase versus the prior-year period and representing the company’s first quarter ever exceeding the 800 million franc milestone. Measured in constant currency terms, the expansion was 26.4%.
Adjusted earnings per share totaled 0.37 francs, significantly outpacing analyst expectations of 0.27 francs. Reported net income reached 103.3 million francs, essentially doubling the 56.7 million francs recorded in the first quarter of 2025.
Direct-to-consumer sales expanded 16.4% to 322.3 million francs — though slightly missing the 326 million franc projection. Wholesale revenue, which generates lower profit margins, increased 13.3% to 509.6 million francs, exceeding the 499 million franc estimate.
Asia-Pacific Surge Driven by Strong Chinese Demand
The Asia-Pacific territory emerged as On’s top-performing region during the quarter, with net sales soaring 44.4% to 174 million francs — translating to 61.4% growth on a constant currency basis. The EMEA region expanded 22.8% while the Americas segment advanced 3.1%, or 17.1% when adjusted for currency fluctuations.
China delivered exceptional results. Revenue in the market is expanding at a high-double-digit rate, with apparel representing approximately 30% of Chinese sales — a dramatic contrast to the roughly 6% apparel contribution company-wide. This performance stands in sharp relief to Nike’s difficulties in the region, where domestic brands have captured substantial market share.
Co-CEO Caspar Coppetti attributed On’s success to its European heritage connecting with Chinese buyers. “We’re Swiss and so the high quality, the attention to detail, really resonates,” he explained to CNBC.
On’s adjusted EBITDA surged 45.4% to 174.3 million francs. The adjusted EBITDA margin expanded significantly to 21.0% from 16.5% in the year-ago quarter.
Full-Year Guidance Elevated Despite Tariff Headwinds
For fiscal 2025, On projected revenue of 3.51 billion francs — suggesting constant currency growth of no less than 23%. The guidance came in marginally below Wall Street’s consensus estimate of 3.54 billion francs.
Management elevated its gross profit margin forecast to a minimum of 64.5%, up from the earlier projection of 63%. The adjusted EBITDA margin outlook was also raised to a range of 19.5%–20%, surpassing the previous guidance of 18.5%–19%.
The company’s projections continue to incorporate a 20% tariff on Vietnamese imports, despite a U.S. Supreme Court decision effectively eliminating that levy. While On has submitted a refund request, management characterized the situation as evolving. Coppetti emphasized that even if tariff relief materializes, the financial impact would be “immaterial.”
Shortly before quarter-end, On unveiled a management restructuring. Co-founders David Allemann and Coppetti transitioned into co-CEO positions, replacing Martin Hoffmann, who had served as the company’s primary representative to investors. The transition was characterized as Hoffmann taking a “planned hiatus.”
Heading into this earnings report, ONON shares were down approximately 27% year-to-date.
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