Prime Highlights:
- Swiss sportswear company On raised its full-year sales forecast for the third consecutive quarter, beating Wall Street expectations.
- The company plans to maintain full-price sales during the holiday season, aiming to be the most premium sportswear brand.
Key Facts:
- On now expects fiscal 2025 sales of 2.98 billion francs ($3.72 billion), up from its previous forecast of 2.91 billion francs.
- During the third quarter, the company reported revenue of 794.4 million francs and adjusted earnings of 43 cents per share, both above analyst expectations.
Background:
Swiss sportswear brand On has raised its full-year sales forecast for the third quarter in a row after reporting results that beat Wall Street expectations. The company, known for its innovative running shoes, continues to see strong demand even as the overall sneaker market slows down.
On now expects fiscal 2025 sales of 2.98 billion francs ($3.72 billion), up from its earlier forecast of 2.91 billion francs. On a constant currency basis, the company anticipates sales growth of 34% from the prior year, surpassing the earlier projection of 31%. Analysts had expected sales of 2.97 billion francs.
During the fiscal 2025 third quarter, On reported revenue of 794.4 million francs, up 25% from 636 million francs a year earlier. Adjusted earnings per share came in at 43 cents, well above the 25 cents anticipated by analysts. Net income for the quarter was 118.9 million francs, compared with 30.5 million francs in the same period last year.
CEO Martin Hoffmann highlighted the company’s focus on premium pricing, full-price sales, and innovation, saying these strategies are resonating strongly with consumers. “Our strong top-line growth and healthy margins reflect our commitment to offering premium products across all channels,” Hoffmann said.
Unlike many competitors that offer holiday discounts, On will keep its products at full price, aiming to be the most premium sportswear brand. Co-founder Caspar Coppetti said this approach sets On apart in a market full of discounts and highlights the brand’s focus on innovation and quality.
On’s products have gained recognition for their cutting-edge technology, including the recently launched Cloudboom Strike LS with “LightSpray” technology. This innovation allows shoes to be produced using a spray gun in minutes, and was worn by runner Hellen Obiri when she broke the women’s record at the New York City Marathon earlier this month.
Even though On is smaller than brands like Nike and Hoka, it is growing by making performance-focused, stylish shoes that athletes and runners like. Its focus on innovation and premium products helps it stand out.
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