On Holding AG delivered another record quarter for net sales, combined with significant increases in EBITDA in the 2025 second quarter, while suffering a net loss in the period compared to net income in the year-ago quarter. Still, the market reacted strongly in the early hours of Tuesday, August 12, as ONON shares jumped more than 10 percent in pre-market trading following the company’s announcement to raise its 2025 full-year guidance.

Second quarter net sales increased 32.0 percent year-over-year (y/y), and by 38.2 percent on a constant-currency (cc) basis, reaching CHF 749.2 million. The growth was attributed to the continued strength in the brand’s direct-to-consumer (DTC) channel, with net sales in the channel increasing 47.2 percent on a reported basis and 54.3 percent on a constant-currency basis, reflecting strong demand across all of On’s regions. As a result, the DTC share reached a new second-quarter high of 41.1 percent of total net sales.

The company stated that it is “executing with clarity and precision” against its strategic growth pillars, driving rapid growth in the apparel category, expanding its premium global retail footprint, and building exceptional momentum in the Asia-Pacific region.

Channel Summary

  • DTC channel net sales increased 47.2 percent (+54.3 percent cc) year-over-year to CHF 308.3 million.
  • Wholesale channel net sales increased 23.1 percent (+28.8 percent cc) year-over-year to CHF 441.0 million.

Region Summary

  • EMEA (Europe, Middle East and Africa) region increased 42.9 percent (+46.1 percent cc) year-over-year to CHF 197.8 million.
  • Americas region net sales increased 16.8 percent (+23.6 percent cc) year-over-year to CHF 432.3 million.
  • Asia-Pacific region net sales increased 101 percent (+111 percent cc) year-over-year to CHF 110.9 million.

Category Summary

  • Shoes category net sales increased 29.9 percent (+36.0 percent cc) year-over-year to CHF 704.9 million.
  • Apparel category net sales increased 67.5 percent (+75.5 percent cc) year-over-year to 36.7 million.
  • Accessories category net sales increased 133 percent (+143 percent cc) year-over-year to 7.7 million.

Profitability and Expenses Summary
The company achieved a strong gross profit margin of 61.5 percent of net sales in the second quarter, up 160 basis points from 59.9 percent in the prior-year Q2 period, citing the increase in DTC share, the company’s continued focus on operational excellence, and favorable foreign exchange developments.

On swung to a net loss of CHF 40.9 million, or negative 5.5 percent of sales, in Q2, compared to net income of CHF 30.8 million, or 5.4 percent of net sales, in the 2024 second quarter. Adjusted net loss was CHF 29.7 million in Q2, compared to Adjusted net income of CHF 46.9 million in Q2 2024.

Basic EPS Class A for the quarter was a loss of CHF 0.12 per share in Q2, compared to EPS from CHF 0.10 per share in Q2 2024. Adjusted basic EPS Class A was a loss of CHF 0.09 per share in Q2, compared to EPS of CHF 0.15 per share in Q2 last year.

Diluted EPS Class A (CHF) was a loss of CHF 0.12 per diluted share in Q2, compared to diluted EPS of CHF 0.09 per share in Q2 2024. Adjusted diluted EPS Class A loss was CHF 0.09 per share in Q2 2025, compared to Adjusted diluted EPS of CHF 0.14 per share in Q2 2024.

The company reported an Adjusted EBITDA margin of 18.2 percent in the second quarter, up 220 basis points year-over-year. Absolute Adjusted EBITDA was CHF 136.1 million in Q2, compared to absolute Adjusted EBITDA of CHF 136.1 million in Q2 2024.

First Half Sales Summary

  • Net sales increased by 37.2 percent (+39.1 percent cc) to CHF 1.48 billion.
  • Net sales through the DTC sales channel increased by 46.3 percent (+48.6 percent cc) to CHF 585.2 million.
  • Net sales through the wholesale sales channel increased by 31.8 percent (+33.4 percent cc) to CHF 890.6 million.
  • Net sales in EMEA, Americas and Asia-Pacific increased by 38.5 percent to CHF 366.4 million, 24.3 percent to CHF 869.7 million and 114.8 percent to CHF 239.7 million, respectively.
  • Net sales in EMEA, Americas, and Asia-Pacific increased by 39.8 percent, 25.9 percent and 119.4 percent on a constant-currency basis, respectively.
  • Net sales from shoes, apparel and accessories increased by 34.9 percent to CHF 1.39 billion, 79.6 percent to CHF 74.8 million and 114.1 percent to CHF 15.2 million, respectively.
  • Net sales from shoes, apparel and accessories increased by 36.7 percent, 82.8 percent and 118.5 percent on a constant-currency basis, respectively.

 First Half Profitability Summary

  • Gross profit increased 39.2 percent y/y to CHF 896.1 million y/y from CHF 643.6 million in H1 2024;
  • Gross profit margin increased to 60.7 percent y/y from 59.8 percent in H1 2024;
  • Net income decreased by 87.1 percent y/y to CHF 15.8 million from CHF 122.2 million in H1 2024;
  • Net income margin decreased to 1.1 percent in H1 2025 from 11.4 percent in H1 2024;
  • Basic EPS Class A (CHF) decreased to 0.05 from 0.38 in H1 2024;
  • Diluted EPS Class A (CHF) decreased to 0.05 from 0.37 in H1 2024;
  • Adjusted EBITDA increased by 52.2 percent to CHF 256.1 million from CHF 168.2 million in H1 2024;
  • Adjusted EBITDA margin increased to 17.4 percent from 15.6 percent in H1 2024;
  • Adjusted net income decreased to CHF 40.9 million from CHF 153.4 million in H1 2024;
  • Adjusted basic EPS Class A (CHF) decreased to 0.12 from 0.48 in H1 2024; and
  • Adjusted diluted EPS Class A (CHF) decreased to 0.12 from 0.47 in H1 2024.

 Balance Sheet Summary

  • Cash and cash equivalents decreased by 8 percent to CHF 846.6 million at quarter-end, from CHF 924.3 million at the 2024 quarter-end.
  • Net working capital increased by 6.9 percent to CHF 533.4 million from CHF 498.9 million last year.

Outlook
Given its strong recent performance and resulting increased confidence in the outlook, On is raising its full-year guidance on all line items.

  • Net sales: Expected to be up at least 31 percent year-over-year on a constant currency basis (previously up at least 28 percent). At current spot rates, On said this corresponds to reported net sales of at least CHF 2.91 billion (previously CHF 2.86 billion). The company said this outlook continues to embed prudence given the still uncertain macro outlook.
  • Gross profit margin: Expected to be in the range of 60.5 percent to 61.0 percent (previously 60.0 percent to 60.5 percent).
  • Adjusted EBITDA margin: Expected to be in the range of 17.0 percent to 17.5 percent (previously 16.5 percent to 17.5 percent).

This guidance includes additional reciprocal tariffs per the U.S. Presidential Executive Order issued on July 31, 2025.

Image courtesy On Holding AG