Finance
Sneaker brand On raises sales forecast as promotions drive demand
Published by Global Banking and Finance Review
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
On Holding raises its sales forecast as promotions boost demand, capturing U.S. market share from Adidas and Nike. The company focuses on direct sales and new product launches.
By Neil J Kanatt
(Reuters) -On Holding raised its annual sales forecast on Tuesday as its focus on brand promotion drove demand for its athletic-focused apparel and footwear, sending its shares up about 9%.
The Swiss company has been capturing market share in the U.S. from rivals, including Adidas and Nike, by targeting younger customers through high-profile collaborations and product innovations.
"We are very clear, we want to be the most premium brand, and as that, will also need to lead with pricing on the premium position," CEO Martin Hoffmann told Reuters.
The Roger Federer-backed company hiked prices in July by about $10, mainly on lifestyle-focused offerings.
"But now, looking into the rest of the year, we don't need more pricing," Hoffman added, even as the company now faces about 40% tariff on goods imported from Vietnam, a key source country for its products.
"The clear momentum in the brand relative to peers, and that the more profitable, more company-controlled DTC (direct-to-consumer) channel is what is driving performance," William Blair analyst Dylan Carden said in a note.
The company has also been boosting its direct sales by expanding its retail presence through physical stores as well as its website and app to help drive full-priced sales.
On Holding recently launched the new Cloudsurfer Max and Cloudboom Max shoes, and has ongoing partnerships with actress Zendaya and musician FKA Twigs.
The company expects annual net sales of at least CHF 2.91 billion ($3.60 billion), above its previous expectations of at least CHF 2.86 billion.
The company sees annual adjusted earnings before interest, taxes, depreciation, and amortization margin between 17% and 17.5%, compared with its previous forecast of 16.5% to 17.5%.
Sales increased 32% to CHF 749.2 million in the second quarter, exceeding analysts' average estimate of CHF 705.3 million, according to data compiled by LSEG.
However, On Holding posted an adjusted loss per share of CHF 0.09, due to a weaker dollar. Analysts had expected a profit of CHF 0.21.
($1 = 0.8093 Swiss francs)
(Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila and Shinjini Ganguli)
On Holding raised its annual sales forecast to at least CHF 2.91 billion, up from CHF 2.86 billion.
Sales increased 32% to CHF 749.2 million in the second quarter, surpassing analysts' average estimate of CHF 705.3 million.
On Holding faces about a 40% tariff on goods imported from Vietnam, which is a key source country for its products.
The company is expanding its retail presence through physical stores and enhancing its direct-to-consumer sales via its website and app.
The company expects an annual adjusted earnings margin between 17% and 17.5%, an increase from the previous forecast of 16.5% to 17.5%.
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