On Holding AG

Latest Report Overview

On Holding AG (ONON) reported for the fiscal year ended December 31, 2025 (Issuer fiscal FY2025) total net sales of CHF 3,014.0 million (+30.0% YoY) with a net income of CHF 203.7 million and diluted EPS of CHF 0.61. The company achieved a strong gross profit margin of 62.8%, up from 60.6% in the prior year, driven by operational efficiencies and improved freight costs. Throughout 2025, On successfully executed its strategic expansion, characterized by high growth in its DTC channel (+33.7% YoY) and strong performance across all regions, particularly in APAC (+96.4% YoY). Management emphasized a relentless focus on innovation, notably with the advancement of LightSpray technology and a continued scaling of the owned retail store network, which reached 67 locations globally. Investments in infrastructure, including new automated fulfillment centers, remain a priority to support omnichannel growth and enhance long-term margins. Despite the strong top-line momentum, net income was impacted by a significant foreign exchange loss (CHF 173.2 million) and strategic investments in marketing and operations to fuel brand building. Looking forward, the company maintains its focus on premium positioning and product vertical expansion as it navigates evolving trade policies and global economic conditions.

Key Takeaways for On Holding AG

• Net sales reached CHF 3,014.0 million for FY2025, representing 30.0% YoY growth, driven by sustained demand in both wholesale and DTC channels.
• Gross profit margin expanded to 62.8% (vs 60.6% in 2024), benefiting from operational efficiency gains and lower air freight usage.
• Net income decreased 15.9% YoY to CHF 203.7 million, largely due to a significant foreign exchange loss of CHF 173.2 million.
• The DTC channel continued to scale, reaching 41.8% of total net sales (up from 40.7% in 2024), as the company prioritizes direct customer relationships and retail store expansion.
• Functional currency for the parent (On Holding AG) and main trading entity (On AG) will change from CHF to USD effective January 1, 2026, aimed at reducing future foreign exchange volatility in financial results.
• The company faces heightened trade uncertainty following the 20% reciprocal import tariff imposed by the US on goods from Vietnam, where ~90% of its footwear is currently produced.

What Does On Holding AG Do?

On Holding AG is a global premium sportswear brand that designs and distributes high-performance footwear, apparel, and accessories. Rooted in its Swiss heritage, the company's product philosophy blends performance-led innovation with distinctive design. Its core product portfolio spans running, outdoor, training, tennis, and everyday lifestyle activities. Key proprietary technologies, including CloudTec and LightSpray, serve as foundational elements for its performance-first product range. On serves a global consumer base, operating through a dual-channel distribution model: a selective wholesale channel, partnering with run specialty, general sporting goods, and fashion retailers, and a direct-to-consumer (DTC) channel consisting of its global e-commerce platform and a growing network of owned retail stores. As of year-end 2025, the company had 67 retail locations across the Americas, EMEA, and Asia-Pacific, with a significant presence in China. The company maintains a lean, asset-light manufacturing model, relying on a focused network of fewer than 30 third-party manufacturing partners, primarily concentrated in Vietnam, Indonesia, Turkey, and China.