A strong quarter, no holiday discounts, and soaring apparel sales help On Holding lift its sales outlook and profit margin guidance, sending shares higher.
What’s going on here?
On Holding hiked its 2025 sales outlook, posted record profits, and announced it won’t offer holiday discounts this year – all of which sent its shares up 12% in premarket trading.
What does this mean?
On Holding is charging forward, increasing its full-year sales target to 2.98 billion Swiss francs ($3.73 billion), marking a 34% rise at constant currencies and outpacing analyst expectations. By choosing not to discount for the holidays, the Swiss sportswear firm is strengthening both its profit margins and its premium brand image. That strategy’s already showing results: third-quarter sales were up 25% year-on-year at 794.4 million francs, while apparel nearly doubled and accessories soared 145%. The company’s reach now clearly goes beyond sneakers. Gross profit margin hit 65.7%, up from last year’s 60.6%, giving executives the confidence to boost guidance and stay optimistic about surpassing future margin goals, even with tariffs on the horizon in 2026. Rapid growth in the Asia-Pacific region – where sales surged 94% – further cements On Holding’s status as a rising global sports brand.
Why should I care?
For markets: Strong brands stand out when times get tight.
On’s robust results fueled a 12% jump in its share price and caught Wall Street’s attention, with analysts like Truist Securities reaffirming their optimism. Direct-to-consumer sales surged 28%, and wholesale revenue rose 23%, showing the company’s ability to attract customers across channels despite consumers growing choosier. By skipping holiday discounts, On highlights its pricing power and boosts its brand’s exclusivity – a stark contrast to rivals in the sluggish discretionary sector.
The bigger picture: Building global growth with premium strategy.
Prioritizing premium, full-price strategies is quickly becoming the go-to playbook for high-growth consumer firms. On’s push beyond shoes into apparel and accessories – with apparel up 87% and accessories up 145% – shows that diversification is paying off. Rapid advances in fast-growing regions like Asia-Pacific signal future opportunities for global expansion. By protecting profits and leaning into brand strength, On could offer a model for other firms facing tariff risks and unpredictable spending patterns ahead.
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Originally Posted November 2025 – On Holding Raises The Bar With Fresh Sales Upgrade
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