On Holding (NYSE:ONON) shares rose around 10% on Tuesday after the Switzerland-based sportswear company reported second-quarter results that exceeded analyst forecasts and raised its full-year guidance.
Net sales increased 32% year-over-year to CHF 749.2 million, or 38.2% on a constant currency basis, surpassing consensus expectations of CHF 703.8 million.
The company’s direct-to-consumer sales were a key growth driver, rising 47.2% to CHF 308.3 million — or 54.3% on a constant currency basis.
Wholesale sales also advanced, climbing 23.1% to CHF 441.0 million, equivalent to a 28.8% increase in constant currency terms.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 50% to CHF 136.1 million from CHF 90.8 million in the same period last year.
The adjusted EBITDA margin improved to 18.2% from 16.0% in the prior year, reflecting operational efficiencies and higher sales volumes.
However, adjusted earnings per share (EPS) came in at negative CHF 0.09, missing analyst expectations of a CHF 0.14 profit.
The stock lost some gains and was trading up by 7% at the time of writing.
Strategic plan driving performance
CEO and CFO Martin Hoffmann attributed the company’s strong results to the disciplined execution of its long-term strategy.
“We’re one and a half years into our three-year strategic plan, and the results of our consistent execution and unwavering focus are clearly visible in the outstanding numbers we report today,” Hoffmann said.
The company’s rapid expansion in direct-to-consumer channels highlights its ability to grow brand presence while improving profitability.
Wholesale growth also remained solid, signaling strong retail partnerships and product demand in international markets.
Management indicated that the results were further proof of the scalability of its business model, which combines premium performance footwear and apparel with an expanding global footprint.
Guidance raised across all key metrics
On Holding’s strong recent performance led management to upgrade full-year guidance for every key financial metric.
Net sales are now expected to grow at least 31% year-over-year on a constant currency basis, up from the previous forecast of at least 28%.
At current exchange rates, this implies reported net sales of no less than CHF 2.91 billion, compared to the prior projection of CHF 2.86 billion.
The company also raised its gross profit margin guidance to a range of 60.5%–61.0%, up from the previous 60.0%–60.5%.
The adjusted EBITDA margin forecast is now between 17.0% and 17.5%, compared with the earlier range of 16.5%–17.5%.
On Holdinig noted that these updated projections incorporate the impact of additional reciprocal tariffs introduced under the US Presidential Executive Order issued on July 31, 2025.
With a strong first half of the year and an upgraded outlook, On Holding enters the latter part of 2025 with momentum, supported by double-digit sales growth, improved profitability, and continued expansion across both direct-to-consumer and wholesale channels.
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