Just 25 years old, On Holding is sprinting from one success to the next. The Swiss running shoe brand is growing twice as fast as Hoka and almost ten times faster than Puma or Adidas.
Despite currency effects and economic uncertainties, the company has exceeded expectations in the third quarter for 2025, enjoying double-digit growth in all regions and channels and becoming one of the most exciting players in the global sporting goods industry.
Sales climbed 24.9 percent year-on-year to CHF 794.4 million (€825m), and even to 34.5 percent on a constant currency basis – the highest quarterly sales in the company’s history. On also set new records in profitability: gross profit rose by 35.5 percent to CHF 522.2 million (€543m), and the gross margin jumped to 65.7 percent – an increase of 510 basis points from the previous year. Around 200 basis points of this are attributable to lower freight and ancillary costs.
| On - Income | |||
|---|---|---|---|
| 2025 | 2024 | Change | |
| Q3, ended Sept. 30 (CHF million) | |||
| Net sales | 794.4 | 635.8 | 24.9% |
| Cost of sales | 272.1 | 250.5 | 8.6% |
| Gross profit | 522.2 | 385.3 | 35.5% |
| SG&A expenses | 397.5 | 312.7 | 27.1% |
| Operating result | 124.7 | 72.6 | 71.8% |
| Financial income | 8.1 | 6.0 | 35.0% |
| Financial expenses | 8.1 | 6.5 | 24.6% |
| Foreign exchange gain | -6.1 | -42.6 | 85.7% |
| Pre-tax | 118.6 | 29.6 | 300.7% |
| Tax | -0.3 | -0.9 | 66.7% |
| Net income | 118.9 | 30.5 | 289.8% |
| Diluted EPS Class A | 0.36 | 0.09 | 300.0% |
| Diluted EPS Class B | 0.03 | 0.01 | 200.0% |
| 9M, ended Sept. 30 (CHF million) | |||
| Net sales | 2,270.2 | 1,711.7 | 32.6% |
| Cost of sales | 851.9 | 682.8 | 24.8% |
| Gross profit | 1,418.3 | 1,028.9 | 37.8% |
| SG&A expenses | 1,123.8 | 870.4 | 29.1% |
| Operating result | 294.5 | 158.8 | 85.5% |
| Financial income | 22.9 | 17.1 | 33.9% |
| Financial expenses | 21.8 | 17.2 | 26.7% |
| Foreign exchange gain | -160.5 | 29.7 | – |
| Pre-tax | 135.2 | 188.1 | -28.1% |
| Tax | 0.6 | 35.4 | -98.3% |
| Net income | 134.6 | 152.7 | -11.9% |
| Diluted EPS Class A | 0.40 | 0.47 | -14.9% |
| Diluted EPS Class B | 0.04 | 0.05 | -20.0% |
| Source: On Running | |||
Operational strength pays off
Adjusted Ebitda rose in Q3 FY25 by 49.8 percent to CHF 179.9 million (€187m), while the margin increased to 22.6 percent, up from 18.9 percent in the previous year. This enabled On Holding to achieve a level of profitability that is rare in this phase of growth. Net profit jumped to CHF 118.9 million (€124m) – an increase of almost 290 percent from the same quarter last year. The net margin improved from 4.8 percent to 15.0 percent, underscoring the brand’s efficiency and pricing power. Adjusted earnings per share rose significantly – from CHF 0.16 (€0.17) to CHF 0.43 (€0.45) – another record high in a quarter that has catapulted On to new heights.
Broad-based growth
Growth was strong in all regions:
- EMEA: +28.6 percent to CHF 213.3 million (€223m, +33.0% cc)
- Americas: +10.3 percent to CHF 436.2 million (€454m, +21.0% cc)
- Asia-Pacific: +94.2 percent to CHF 144.9 million (€151m, +109.2% cc)
The dynamic momentum continued in China in particular, with triple-digit growth on a constant currency basis for the fourth consecutive quarter. The picture is similar for the distribution channels:
- Direct-to-consumer: +27.6 percent to CHF 314.7 million (€327m, +37.5% cc)
- Wholesale: +23.3 percent to CHF 479.6 million (€499m, +32.5% cc)
Within the product mix, shoes remain the core category, but the smaller segments grew disproportionately:
- Shoes: +21.1 percent to CHF 731.3 million (€760m, +30.4% cc)
- Apparel: +86.9 percent to CHF 50.1 million (€52m, +100.2% cc)
- Accessories: +145.3 percent to CHF 13.0 million (€13.5m, +160.8% cc)
This shows that the apparel segment is gaining strategic weight – key to On’s goal of positioning itself as a comprehensive premium sports brand.
| On - Revenue | |||||
|---|---|---|---|---|---|
| 2025 | 2024 | Change | Change (constant currency) | ||
| Q3, ended Sept. 30 (CHF million) | |||||
| Channels | |||||
| Wholesale | 479.6 | 389.1 | 23.3% | 32.5% | |
| DTC | 314.7 | 246.7 | 27.6% | 37.5% | |
| Net sales | 794.4 | 635.8 | 24.9% | 34.5% | |
| Regions | |||||
| Americas | 436.2 | 395.5 | 10.3% | 21.0% | |
| EMEA | 213.3 | 165.8 | 28.6% | 33.0% | |
| Asia-Pacific | 144.9 | 74.6 | 94.2% | 109.2% | |
| Net sales | 794.4 | 635.8 | 24.9% | 34.5% | |
| Segments | |||||
| Shoes | 731.3 | 603.7 | 21.1% | 30.4% | |
| Apparel | 50.1 | 26.8 | 86.9% | 100.2% | |
| Accessories | 13.0 | 5.3 | 145.3% | 160.8% | |
| Net sales | 794.4 | 635.8 | 24.9% | 34.5% | |
| 9M, ended Sept. 30 (CHF million) | |||||
| Channels | |||||
| Wholesale | 1,370.3 | 1,065.1 | 28.7% | 33.1% | |
| DTC | 899.9 | 646.6 | 39.2% | 44.4% | |
| Net sales | 2,270.2 | 1,711.7 | 32.6% | 37.3% | |
| Regions | |||||
| Americas | 1,305.9 | 1,095.1 | 19.2% | 24.1% | |
| EMEA | 579.7 | 430.4 | 34.7% | 37.2% | |
| Asia-Pacific | 384.6 | 186.2 | 106.6% | 115.3% | |
| Net sales | 2,270.2 | 1,711.7 | 32.6% | 37.3% | |
| Segments | |||||
| Shoes | 2,117.1 | 1,630.8 | 29.8% | 34.4% | |
| Apparel | 124.9 | 68.4 | 82.6% | 89.5% | |
| Accessories | 28.2 | 12.4 | 127.4% | 136.7% | |
| Net sales | 2,270.2 | 1,711.7 | 32.6% | 37.3% | |
| Source: On Running | |||||
Premium strategy pays off: Management remains optimistic
Management is confident about the coming months. Caspar Coppetti, co-founder and Executive Co-Chairman, said in the earnings call: “This quarter was another milestone – proof that our premium strategy is paying off. Innovation, purpose, and performance come together to inspire movement.” Martin Hoffmann, CEO and CFO, added: “We want to grow sustainably. We want to focus on high-quality growth. The growth corridor we are now entering is basically exactly what we need to drive healthy growth for the future.”
Outlook: Forecast for 2025 raised
After a record quarter, On is looking ahead with confidence. The Swiss premium provider now expects sales growth of around 34 percent on a constant currency basis, corresponding to annual sales of CHF 2.98 billion (€3.10bn). The gross margin is also expected to be higher than previously forecast, at around 62.5 percent, while the adjusted Ebitda margin is likely to rise to over 18 percent.
Market positioning: Premium instead of volume
On has quickly established itself as a leading challenger in the global sporting goods market. With its sales the brand is on par with Hoka, clearly ahead of Salomon, and in momentum and premium positioning now challenges larger players like Under Armour. It also sets itself apart from volume suppliers such as Puma and Skechers. The Zurich-based company has succeeded in presenting exercise as a modern lifestyle – functional, aesthetic and ambitious. David Allemann, co-founder and executive co-chairman, said in the earnings call: “Our vision is to build the highest-quality global sports brand – with a profile somewhere between sports and fashion.”
With double-digit growth, a clear brand identity and international appeal, On continues to outpace its rivals – positioning itself as an emerging global player in the premium sports segment.
