On Holding (ONON) Stock: Swiss Brand Beats Q3 Estimates And Lifts Sales Outlook

TLDR

• On Holding reported Q3 earnings of $0.54 per share, beating analyst estimates of $0.34 by 59%
• The company raised its full-year sales growth forecast to at least 34% from a previous estimate of 31%
• Asia-Pacific region sales more than doubled in Q3 when adjusted for currency fluctuations
• Revenue reached $993 million in the quarter, exceeding Wall Street expectations of $960 million
• CEO Martin Hoffmann says November sales momentum remains “very strong” heading into the holiday season

On Holding posted third quarter results that beat Wall Street forecasts on both the top and bottom lines. The Swiss athletic footwear company also bumped up its full-year outlook.

CEO and CFO Martin Hoffmann told Yahoo Finance the company had a strong quarter “well above expectations.” He said early November results show the momentum continues.

The company now expects full-year net sales to grow at least 34% year-over-year. That’s up from a previous forecast of 31% growth.

On Holding AG, ONON

At its 2023 Investor Day, On projected net sales of more than $4.44 billion by 2026. Hoffmann said the company is tracking ahead of that target.

Third quarter earnings per share came in at $0.54. Analysts had expected $0.34, according to Bloomberg data.

Revenue hit $993 million, topping the $960 million estimate. On also said it expects margins to come in above previous forecasts.

Regional Growth Tells Two Different Stories

The Asia-Pacific region led revenue growth in the quarter. Sales more than doubled when adjusted for currency changes.

Hoffmann said the Asia-Pacific consumer skews younger. These buyers seek out premium products that differ from mass market options.

Americas sales rose 21% during the quarter. Hoffmann said US consumers are buying On for new categories like tennis and training sneakers.

The company is expanding its reach across age groups. Spokespeople like Zendaya help connect with younger consumers.

Stock Has Declined With Broader Footwear Sector

On Holding stock fell about 35% heading into the earnings report. The broader footwear space has seen similar declines this year.

Nike shares dropped 16% year-to-date. Deckers Outdoors fell 59% over the same period.

Citi analyst Paul Lejuez said fears about Nike’s potential comeback contributed to On’s stock decline. Lejuez believes any Nike turnaround will take 12 to 18 months to show results.

Telsey Advisory Group analyst Cristina Fernández noted strong traffic to On stores during recent visits. She observed low promotional activity across the marketplace.

The company raised prices due to tariffs back in July. Innovation like the Cloudsurfer and Cloudsurfer Max keeps customers willing to pay the higher price tags.

Next year On plans to introduce updated versions of the Cloud Runner and Cloud Monster. The company will also bring its robotically-made LightSpray sneakers to mass markets.

On is currently searching for a new CFO. Hoffmann took on the sole CEO role after co-CEO Marc Maurer left earlier this year.

The company reported a gross profit margin of 65.7% in the quarter. Net income margin increased to 15.0%.

On expanded its global retail presence during the quarter. The apparel category showed strong growth across all regions.

The company reported record financial results for Q3 2025. Strong demand came from all channels and regions.

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