What's Happening?
On Holding AG has announced record net sales and profitability for the third quarter of 2025, driven by strong global demand and strategic execution. The company reported a 24.9% increase in net sales year-over-year,
reaching CHF 794.4 million, with significant growth in both Direct-to-Consumer and Wholesale channels. The apparel category saw an 86.9% increase in net sales, while the Asia-Pacific region delivered triple-digit growth. On's gross profit margin reached a new high of 65.7%, supported by operational efficiencies and favorable foreign exchange effects. The company has raised its full-year guidance, expecting continued growth and profitability.
Why It's Important?
On's impressive financial performance underscores the effectiveness of its premium business model and strategic priorities. The company's ability to achieve significant growth across multiple channels and regions highlights its scalability and global appeal. On's focus on innovation and athlete-first strategies has strengthened its brand positioning, attracting younger consumers and enhancing cultural relevance. The raised guidance reflects confidence in sustained momentum, with potential benefits for investors and stakeholders. As On continues to expand its global presence, its success could influence trends in the sportswear industry, emphasizing the importance of strategic execution and brand differentiation.
What's Next?
On plans to continue its strategic investments and manage foreign exchange headwinds, aiming to maintain its growth trajectory. The company is focused on enhancing its product pipeline and strengthening its connection with consumers through premium experiences. On's upcoming holiday campaign and recent athlete achievements are expected to further boost brand momentum. The company will hold a conference call to discuss its third-quarter results, providing insights into its future plans and market conditions. As On navigates geopolitical uncertainties and supply chain challenges, its ability to adapt and innovate will be crucial in sustaining its success.
