Shares of On Holding (ONON +17.99%) leaped 18% on Wednesday after the Switzerland-based premium footwear maker boosted its full-year sales and profit forecast.
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Business is booming
On's third-quarter net sales grew by 24.9% to 794.4 million Swiss francs ($996 million), or 34.5% when adjusting for currency fluctuations.
The gains were broad-based. On enjoyed solid growth in both its direct-to-consumer and wholesale channels. The sportswear brand also saw strong sales across its Europe, Middle East, and Africa (EMEA); Americas; and Asia-Pacific (APAC) segments.
Apparel and accessories were particularly strong growth drivers, with sales rising 86.9% and 145.3%, respectively.
NYSE: ONON
Key Data Points
Better still, On's premium pricing strategy and cost control measures helped to boost its gross margin to 65.7%, up from 60.6% in the third quarter of 2024. The company's adjusted net income, in turn, soared 182.9% to 142 million francs ($178 million), or 0.43 francs ($0.54) per share.
"Our focus on premium, on full-price sales, on innovation, on that intersection between performance and design is just resonating very strongly with the consumer, and it's really setting ourselves apart," CEO Martin Hoffmann said during an interview with CNBC.
On anticipates an excellent holiday selling season
Encouraging ongoing sales trends prompted On to lift its full-year outlook. Management now expects constant-currency net sales growth of 34%, up from a prior forecast of 31%, in 2025. The company also raised its gross margin guidance to 62.5%, up from roughly 61%.
"These results give us strong confidence -- both for a successful holiday season and for the long term, as we continue building the world's most premium global sportswear brand," Hoffmann said.
