On (ONON) earnings Q3 2025

Swiss Sportswear Company On Defies Industry Trends with Strong Growth

On, the Swiss shoemaker known for its innovative approach to running shoes, has raised its full-year guidance for the third quarter in a row. Despite a slowdown in the sneaker market, the company posted another three months of double-digit growth, with sales reaching 794 million francs, a 25% increase from the same period last year. This growth has led On to expect fiscal 2025 sales to reach 2.98 billion francs, up from its previous guidance of 2.91 billion francs.

The company’s focus on premium, full-price sales, innovation, and the intersection of performance and design has resonated strongly with consumers. This approach has set On apart from its competitors, such as Nike and Hoka, which are planning for a sales decline or slowdown in growth. On’s CEO, Martin Hoffmann, attributes the company’s success to its commitment to full-price sales and innovation, stating that “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.”

Beating Expectations and Defying Industry Trends

On’s fiscal 2025 third-quarter results beat Wall Street’s expectations, with earnings per share of 43 cents in francs adjusted, compared to the expected 25 cents. The company’s reported net income for the three-month period was 118.9 million francs, or 36 cents per share, compared to 30.5 million francs, or 9 cents per share, a year earlier. On’s sales rose to 794.4 million francs, up about 25% from roughly 636 million francs a year earlier.

While competitors like Nike and Hoka plan for a sales decline or slowdown, On is raising its sales guidance as it gears up for the holiday shopping season. The company will not be offering a Black Friday discount, instead choosing to maintain full prices throughout the holiday season. This strategy is similar to that of luxury brands and reflects On’s goal of being the most premium sportswear brand on the market.

Innovation and Premium Products

On’s success can be attributed to its innovative products, such as the Cloudboom Strike LS, which was produced using the company’s “LightSpray” technology. This technology allows for the creation of performance running shoes using a spray gun in a matter of minutes. The company’s focus on innovation has led to the creation of high-quality, premium products that are sought after by consumers. As co-founder and executive co-chairman Caspar Coppetti stated, “Runners really do pay attention to what people are wearing now when they’re in a race, because these innovations trickle down and they inform their choices.”

On’s commitment to innovation and premium products has allowed the company to differentiate itself in a competitive market. As the holiday shopping season approaches, On is well-positioned to continue its growth and solidify its position as a leader in the sportswear industry.