What's Happening?
Swiss sportswear company On Holding AG has reported record results for the third quarter of the 2025 financial year, surpassing market expectations. The company achieved a revenue of 794.4 million Swiss francs,
marking a 24.9% increase compared to the same quarter last year. Adjusted for currency fluctuations, the revenue growth was 34.5%. The direct-to-consumer channel saw a 27.6% increase in revenue, while the wholesale business grew by 23.3%. The core footwear business experienced a 21.1% increase, and apparel and accessories categories showed even stronger growth. The Asia-Pacific region was the most dynamic, with revenue nearly doubling compared to the previous year.
Why It's Important?
The significant revenue growth highlights On Holding AG's strong market position and effective business strategies. The company's ability to raise its annual forecasts indicates confidence in continued momentum and market demand. The growth in the Asia-Pacific region underscores the potential for expansion in emerging markets. The increase in gross margin and adjusted EBITDA suggests improved operational efficiency and cost management. This performance could attract more investors and strengthen the company's competitive edge in the global sportswear industry.
What's Next?
On Holding AG has raised its annual forecasts, expecting a currency-adjusted revenue increase of 34% to 2.98 billion Swiss francs for 2025. The management anticipates an adjusted EBITDA margin of over 18%, up from the previous forecast. The company is likely to continue focusing on expanding its market presence in high-growth regions like Asia-Pacific. Investors and stakeholders will be watching closely to see if the company can sustain its growth trajectory and meet its revised targets.
