On (ONON) Q3 2025 results

It raised its full-year forecast for the third consecutive quarter on Wednesday after the Swiss sportswear company posted three more months of double-digit growth, weathering a slowdown in the sneaker market.

The company, known for its innovative approach to running shoes, now expects its sales for fiscal 2025 to reach 2.98 billion francs ($3.72 billion), up from its previous forecast of 2.91 billion francs, on a published basis. On a constant currency basis, the company expects sales to increase 34% year-over-year, up from its previous forecast of 31%.

The forecasts are slightly higher than the 2.97 billion francs expected by analysts, according to LSEG.

“Our focus on premium, on full-price sales, on innovation, on that intersection between performance and design resonates very strongly with the consumer, and that really sets us apart,” CEO Martin Hoffmann told CNBC in an interview. “You see it in the results. We have strong revenue growth, we have strong margin, which shows that we remain fully committed to full-price sales across all our channels.”

During its fiscal 2025 third quarter, the sportswear company beat Wall Street expectations for revenue and bottom line.

Here’s how On performed compared to what Wall Street expected, based on a survey of analysts by LSEG:

• Earnings per share: 43 cents in adjusted francs versus 25 cents expected
• Income: 794 million francs compared to 763 million francs expected

The company’s reported net profit for the quarter ended September 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.

Turnover amounted to 794.4 million francs, an increase of around 25% compared to around 636 million francs a year earlier.

On’s encouraging results come as competitors like Nike and Hoka forecast either falling sales or slowing growth as discretionary spending stagnates and tariffs eat into shoppers’ wallets. In late September, Nike said it expected its sales in the current quarter, which typically runs from early September to early December, to fall by a low single-digit percentage, part of its efforts to reignite innovation and streamline operations. DeckersThe parent company behind Hoka, On’s fashionable shoe brand, cut its sales forecast for Hoka in October.

Meanwhile, On is raising its sales forecast as it prepares for the holiday shopping season. Retail analysts expect most of the industry to rely heavily on discounts and promotions to drive demand during the critical holiday shopping period, but On won’t even offer a Black Friday discount, said co-founder and co-executive chairman Caspar Coppetti.

The price will be “full price throughout the holiday season,” Coppetti said in an interview with CNBC. “It’s happening in today’s environment of a very competitive, very discount-driven environment, and so this upgrade that we’ve done, and then just being able to command a much higher sales price, really sets On apart.”

Although On is typically sold alongside brands like Nike, Hoka and Brooks Running, its vacation strategy is similar to that of luxury brands. This is part of the company’s strategy to become the most premium sportswear brand on the market by offering not only the highest prices, but also the most innovative products in footwear and apparel.

Still much smaller than most of the traditional brands it competes with, On has slowly eaten away at its market share, mainly 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 allows performance running shoes to be made using a spray gun in minutes. Runner Hellen Obiri wore these shoes when she broke the women’s New York City marathon record by nearly three minutes earlier this month.

“It’s a very strong validation,” Coppetti said. “Runners really pay attention to what people wear when they’re in a race, because those innovations trickle down and inform their choices.”