What's Happening?
Swiss sportswear company On Holding AG experienced a record sales increase in the second quarter of 2025, with sales reaching 1.48 billion Swiss francs, marking a 32% rise compared to the previous year. Despite this growth, the company reported a net loss of 40.9 million Swiss francs due to negative currency effects. The company's retail sector was a significant growth driver, with a 47.2% increase in revenue. Sales in the Asia-Pacific region more than doubled, while American sales grew by 16.8%. The company's gross margin improved to 61.5%, and adjusted EBITDA increased by 50% to 136.1 million Swiss francs. Management has raised its annual forecasts, expecting currency-adjusted sales growth of at least 31% for 2025.
AD
Why It's Important?
The financial performance of On Holding AG highlights the challenges faced by companies operating internationally, where currency fluctuations can significantly impact profitability. Despite strong operational growth, the net loss underscores the importance of managing currency risks. The company's ability to increase its gross margin and EBITDA suggests operational efficiency improvements, which are crucial for long-term sustainability. The raised forecasts indicate confidence in continued growth, which could positively impact investor sentiment and market positioning in the competitive sportswear industry.
What's Next?
On Holding AG's management has set ambitious targets for the remainder of the year, with expectations of continued sales growth and improved margins. The company may focus on further expanding its retail sector and enhancing efficiency to mitigate currency-related losses. Stakeholders will likely monitor the company's ability to achieve these forecasts and manage external economic factors. The company's performance in key regions like Asia-Pacific and America will be critical in driving future growth.
