On Holding AG Earnings Overview
On Holding AG, the Swiss sportswear brand, continues its upward trajectory with another impressive quarter. The company's focus on its strategic pillars has resulted in significant earnings growth, highlighted by a substantial increase in net sales and profitability. Fueled by the brand's strong global demand and innovative product launches, On Holding AG has set new records in its financial performance, reinforcing its premium positioning in the market.
On Holding AG Results
Key Financial Metrics
The following table summarizes On Holding AG’s key financial metrics for the second quarter of 2025 compared to the same period in 2024:
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|---|---|---|---|
| Total Net Sales (CHF) | 749.2M | - | +32.0% |
| Net Income (CHF) | (40.9)M | 30.8M | -232.7% |
| Gross Profit Margin (%) | 61.5 | 59.9 | +1.6pp |
| Adjusted EBITDA (CHF) | 136.1M | 90.8M | +50.0% |
| Adjusted Net Income (CHF) | (29.7)M | 46.9M | -163.3% |
Notably, On posted a net sales increase of 32.0% year-over-year to CHF 749.2 million, driven by a remarkable 47.2% growth in its Direct-to-Consumer (DTC) channel. However, the company registered a net loss of CHF 40.9 million, attributing this to strategic investments and macroeconomic factors impacting profitability.
Revenue Breakdown
Performance Across Segments
| Segment | Q2 2025 Sales (CHF) | YoY Change | Constant Currency Change |
|---|---|---|---|
| Direct-to-Consumer | 308.3M | +47.2% | +54.3% |
| Wholesale | 441.0M | +23.1% | +28.8% |
| EMEA | 197.8M | +42.9% | +46.1% |
| Americas | 432.3M | +16.8% | +23.6% |
| Asia-Pacific | 119.2M | +101.3% | +110.9% |
The robust performance in the DTC segment illustrates the brand's expanding online presence and direct engagement with consumers. The wholesale segment also grew significantly, bolstered by strong partnerships and regional expansion efforts, particularly in Asia-Pacific, where sales more than doubled. The company's strategic focus on the apparel category and premium global retail footprint continues to bear fruit.
Key Developments
On Holding AG's second-quarter highlights include:
-
Operational Excellence : The company improved its gross profit margin to 61.5%, up from 59.9% in the prior year, owing to efficiency gains and favorable currency effects.
-
Global Brand Momentum : On gains global recognition with notable launches in Running, Tennis, and Trail categories, reinforcing its distinctive positioning at the intersection of lifestyle and performance.
-
Innovation and Sustainability : Continued investment in cutting-edge technologies such as CloudTec® and LightSpray™ maintains On's reputation as a leader in innovative, sustainable sportswear solutions.
These developments underscore On's strategic focus on premium product offerings, enhancing its competitive edge in the rapid-paced sportswear market.
Comments from Company Officers
David Allemann, Co-Founder and Executive Co-Chairman, emphasized On's strategic commitment: "Our Q2 results leave no doubt: On is playing the long game. We achieved a remarkable 38.2% net sales growth on a constant currency basis, not by chasing trends, but by building a resilient brand for decades ahead."
Martin Hoffmann, CEO and CFO, stated: "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. Our performance gives us strong conviction in the impact of our strategy and the opportunities ahead to build an even more distinctive and desirable global brand."
Conclusion
On Holding AG has delivered a strong financial performance in Q2 2025, reflecting effective execution against its strategic pillars and strong global demand for its premium products. Investors and stakeholders should stay attuned to On's strategic moves and market dynamics, as they will play crucial roles in shaping On's future growth and stock performance.
