Roger Federer-Backed On Holdings Lifts 2025 Sales Outlook Amid Surging Demand For Its Shoes

The company’s third-quarter net sales rose 24.9% to CHF 794.4 million, compared with Wall Street estimates of CHF 763.8 million, according to data compiled by Fiscal AI.

• The company stated that it expects full-year 2025 net sales to increase by 34% year-over-year on a constant currency basis, compared with the previously forecasted rise of at least 31%.
• On also said that it now expects annual gross profit margin to be around 62.5%, compared with the prior forecast of 60.5% to 61.0%.
• On said that the increase in sales reflects broad-based demand, with a strong performance across both DTC and Wholesale channels.

Roger Federer-backed On Holdings (ONON) raised its annual sales forecast on Wednesday, heading into the key holiday season, driven by strong demand for its core footwear franchises, such as Cloudmonster and Cloudrunner. Customer traffic across its direct-to-consumer (DTC) stores continued to grow.

The company stated that it expects full-year 2025 net sales to increase by 34% year-over-year on a constant currency basis, compared with the previously forecasted rise of at least 31%. On noted that at current spot rates, this corresponds to reported net sales of CHF 2.98 billion ($3.73 billion), up from the prior expectation of CHF 2.91 billion.

The Swiss sportswear maker also said that it now expects annual gross profit margin to be around 62.5%, compared with the prior forecast of 60.5% to 61.0%.

Retail sentiment on On improved to ‘extremely bullish’ from ‘bullish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

DTC And Apparel Growth

Heading into earnings, Wall Street analysts had noted that On’s results have been majorly driven by market share gains in apparel and growth in its own retail stores.

Telsey Advisory Group’s Cristina Fernández highlighted new product launches — including collaborations with actor Zendaya and the introduction of Cloudboom Max, Cloudpulse Pro, and Next — as key growth drivers.

On said that the increase in sales reflects broad-based demand, with a strong performance across both DTC and Wholesale channels.

The company added that the apparel category achieved another quarter of growth, with a meaningful and balanced increase in share across all channels and regions. On’s net sales from apparel rose by 86.9%.

On’s net sales through the DTC channel increased by 27.6% to CHF 314.7 million, while the wholesale channel saw a 23.3% jump to CHF 479.6 million.

“These results give us strong confidence - both for a successful holiday season and for the long term,” said Martin Hoffmann, CEO and CFO of On.

On’s Q3 Results

The company’s third-quarter net sales rose 24.9% to CHF 794.4 million, compared with Wall Street estimates of CHF 763.8 million, according to data compiled by Fiscal AI.

On’s adjusted earnings per share for the quarter came in at CHF 0.43, compared with expectations of CHF 0.27.

For the rest of 2025 and 2026, analysts expect product launches, store openings and increased apparel penetration to benefit On.

Shares of On have declined nearly 36% this year.

1 CHF = $1.25<

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