Swiss sportswear company On Holding (ONON) has once again lifted its annual revenue and margin outlook after reporting a stellar third quarter, marking the third upward revision this year. The company’s continued momentum reflects soaring global demand for its premium running shoes and sneakers — even amid price increases and market competition.
Strong Q3 Performance Boosts Confidence
On Holding’s latest results easily beat Wall Street expectations, sending its shares soaring over 20% in early trading on Wednesday. The brand — known for its innovative “Cloud” series running shoes — posted earnings per share of 0.43 Swiss francs ($0.54), exceeding analysts’ estimates of 0.27 francs ($0.34), according to Bloomberg data.
Revenue climbed to CHF 794.4 million ($993 million), surpassing the projected CHF 767.5 million ($960 million). On also reported net income of 118.9 million francs ($133 million), a sharp rise from 30.5 million francs ($34 million) a year earlier.
CEO Martin Hoffmann told Yahoo Finance that the company had “an amazing, strong quarter, significantly above expectations,” adding that early November sales indicate that “momentum is very strong” heading into the crucial holiday shopping season.
Raising the Bar for 2025
For fiscal 2025, On expects net sales to rise by at least 34% year-over-year, up from its earlier forecast of 31%. On a constant currency basis, it now anticipates 2025 sales of 2.98 billion Swiss francs ($3.72 billion), compared to the prior guidance of 2.91 billion francs.
At its 2023 Investor Day, the company projected 2026 net sales above $4.44 billion, implying a 26% annual growth rate — a target Hoffmann now says On is “well ahead of.”
The company has also raised its long-term compound annual growth rate (CAGR) for net sales from 27% to at least 30% through 2026, while expecting operating margins to come in above prior forecasts.
Asia-Pacific Leads Global Growth
While On Holding’s growth is global, the Asia-Pacific region stood out this quarter, with sales more than doubling year-over-year when adjusted for currency fluctuations. Hoffmann noted that this success comes from a younger, premium-driven consumer base that values exclusivity and design innovation.
In the Americas, on the other hand, sales went up 21% because U.S. customers liked On Holding’s new product lines, like tennis and training sneakers. The business has also been trying to reach younger people by working with famous personalities like Zendaya as spokesmodels to boost its “premium appeal.”
How On Holding Stands Out in a Market Full of Competitors
Even though Nike (NKE) and Deckers Outdoor (DECK), two big names in the industry, have seen their stock prices drop this year, On Holding is still building its brand. Hoffmann emphasized that On Holding is “charting our own way” with a mission to become the most premium global sportswear brand.
Unlike many rivals offering heavy discounts, On Holding is committed to full-price sales, even through the holiday season. “We are one of the only brands that does only full price, and the momentum and the growth that we have seen was absolutely amazing,” Hoffmann said.
Co-founder Caspar Coppetti echoed this sentiment, confirming that On Holding will remain “full price through the holiday season” despite a discount-heavy retail environment. This high-end approach fits with the company’s goal of being at the point where performance and design meet.
New ideas as a growth engine
On’s continued success is built on its commitment to new ideas. Even though costs went up early this year because of taxes, customers are highly interested in the company’s new Cloudsurfer and Cloudsurfer Max models.
Looking ahead, On wants to add next-generation goods like the Cloud Runner and Cloud Monster to its line-up. It also wants to release LightSpray sneakers made by robots in 2025.
The brand’s breakthrough LightSpray technology, which allows shoes to be produced using a spray gun within minutes, recently gained global attention after runner Hellen Obiri wore On’s “Cloudboom Strike LS” to break the women’s record at the New York City Marathon.
“That’s a very strong validation,” said Coppetti. “Runners really do pay attention to what people are wearing in a race, and these innovations trickle down and inform their choices.”
Leadership and Strategy Forward
Following the departure of co-CEO Marc Maurer earlier this year, Hoffmann now serves as the sole CEO, with the company actively searching for a new CFO. Despite leadership changes, Hoffmann said On remains “fully committed to its long-term growth strategy” and premium brand positioning.
Citi analyst Paul Lejuez commented that On’s earlier stock decline was partly due to concerns about Nike’s resurgence but added that “Nike’s turnaround may take 12–18 months to show improvement.” Meanwhile, On’s premium pricing model, loyal customer base, and innovation-driven growth suggest it’s carving a distinct path in the athletic footwear market.
Looking Ahead
On Holding continues to distinguish out in a declining sneaker industry with its third straight projection upgrade, high demand in worldwide markets, and outstanding execution on innovation. Its bold strategy of maintaining high prices, introducing new product lines, and attracting younger consumers positions it for sustained success through 2025 and beyond.
Hoffmann summed it up:
“Our commitment to quality, innovation, and design is resonating strongly with customers, as reflected in the results.”