Shares in Swiss brand On Holding jumped 20% on Wednesday, buoyed by better-than-expected quarterly results and an upward revision of its annual targets for the third time in a row. The company now anticipates sales of 2.98bn Swiss francs ($3.72bn) for FY 2025, up from 2.91bn Swiss francs previously. At constant exchange rates, expected growth rises from 31% to 34%, slightly above market estimates.
Q3 net income amounted to 118.9m Swiss francs, or 36 cents per share, compared with just 30.5m Swiss francs a year earlier. Excluding exceptional items, earnings reached 43 cents, well above the expected 25 cents. Revenue grew 25% y-o-y to 794.4m Swiss francs, exceeding forecasts of 763m Swiss francs. The company is relying on its premium positioning, no-discount strategy, and strong capacity for innovation to grow despite a global slowdown in the sneaker market, which is weighing on competitors such as Nike and Hoka (Deckers).
Ahead of the holiday season, the brand is maintaining its no-promotion policy, including for Black Friday, confirming its desire to establish a high-end image inspired by luxury. On is also focusing on innovative products such as the Cloudboom Strike LS, designed with LightSpray technology and worn by Hellen Obiri during her record-breaking victory at the New York Marathon. With rapid growth and a distinctive positioning, On aims to become the most premium sports brand in the market.
