On Holding Raises 2025 Sales Forecast After 32% Q2 Revenue Surge

On Holding, the Swiss sneaker maker backed by Roger Federer, raised its full-year 2025 net sales forecast to at least CHF 2.91 billion ($3.60 billion), up from the previous estimate of CHF 2.86 billion, driven by a 32% year-over-year jump in second-quarter revenue. The company credited strong direct-to-consumer sales growth, which increased 47% and accounted for 41% of total revenue, as well as favorable foreign exchange developments. Despite posting a net loss of CHF 40.9 million in the quarter, On Holding's operating profit nearly doubled, and it expects an adjusted EBITDA margin of 17% to 17.5% for 2025, an improvement over prior guidance. CEO Martin Hoffmann highlighted the brand's premium positioning and successful marketing campaigns featuring celebrities like Zendaya, which have helped On gain market share in the U.S. against competitors such as Adidas and Nike, though tariffs—especially a 40% tariff on imports from Vietnam—pose a challenge. Shares saw a significant rise in premarket trading following the earnings beat and outlook raise, although the stock remains down over 16% year-to-date.