The logo of Swiss shoemaker On is displayed at a store in Zurich, Switzerland, August 28, 2025.
Denis Balibouse | Reuters
In It raised its full-year guidance for the third straight quarter on Wednesday after the Swiss sportswear company posted another three months of double-digit growth, offsetting a slowdown in the sneaker market.
The company, known for its innovative approach to running shoes, now expects sales in fiscal 2025 to reach 2.98 billion francs ($3.72 billion), up from its previous forecast of 2.91 billion francs, according to reports. On a constant currency basis, the company anticipates sales will grow 34% year-over-year, up from its previous forecast of 31%.
According to LSEG, the forecast is slightly higher than the 2.97 billion francs expected by analysts.
“Our focus on premium, on full-price sales, on innovation, on that intersection of performance and design is resonating very strongly with the consumer, and it’s really differentiating us,” CEO Martin Hoffmann told CNBC in an interview. “You see it in the results. We have strong revenue growth, we have a strong margin, which shows that we remain fully committed to full-price sales, and this across all our channels.”
On shares rose more than 20% in premarket trading on Wednesday.
During the third quarter of fiscal 2025, the sportswear company exceeded Wall Street expectations in terms of revenue and results.
Here’s how On performed compared to what Wall Street anticipated, according to a survey of analysts by LSEG:
- Earnings per share: 43 cents in adjusted francs versus 25 cents expected
- Revenue: 794 million francs compared to the planned 763 million francs
The company’s reported net income for the three-month period ended Sept. 30 was 118.9 million francs, or 36 cents per share, compared with 30.5 million francs, or 9 cents per share, a year earlier.
Excluding one-time items, On posted earnings of 43 cents per share.
Sales increased to 794.4 million francs, up approximately 25% from approximately 636 million francs the previous year.
On’s good results are due to the fact that competitors such as Nike and Hoka plan for declining sales or slowing growth as discretionary spending stagnates and tariffs hit shoppers’ wallets. In late September, Nike said it expected sales in its current quarter, which typically runs from early September to early December, to fall by a low-single-digit percentage as it works to reignite innovation and streamline operations. DeckersThe parent company behind Hoka, On’s popular footwear brand, cut its sales forecast for Hoka in October.
Meanwhile, On is raising its sales forecasts as it prepares for the holiday shopping season. Retail analysts expect most of the industry to lean heavily on discounts and promotions to boost demand during the critical holiday shopping season, but On won’t even offer a Black Friday discount, said co-founder and co-CEO Caspar Coppetti.
Pricing will be “full through the holiday season,” Coppetti said in an interview with CNBC. “This is in the context of a very competitive and very discount-driven environment right now, so this leveling that we’ve done and then just being able to get a much higher selling price, really sets On apart.”
While On is often sold alongside brands like Nike, Hoka and Brooks Running, its holiday strategy is similar to that of luxury brands. It is part of the company’s strategy to be the most premium sportswear brand on the market, not only offering the highest prices but also the most innovative products in footwear and clothing.
Still much smaller than many of the legacy brands it competes with, On has slowly been reducing its market share primarily through innovation, where industry leader Nike has been criticized for falling behind.
Last year, On launched its Cloudboom Strike LS produced with its “LightSpray” technology, which makes high-performance running shoes with a spray gun in a matter of minutes. Runner Hellen Obiri was wearing the shoes when she broke the women’s record at the New York City Marathon by nearly three minutes earlier this month.
“That’s very strong validation,” Coppetti said. “Runners really pay attention to what people are wearing now when they’re in a race, because these innovations come in and influence their decisions.”
