Published by Global Banking and Finance Review
Posted on November 12, 2025
By Helen Reid and Juveria Tabassum
(Reuters) -On Holding on Wednesday raised its annual revenue target for the third time this year after beating quarterly sales expectations, thanks to strong demand for its running shoes and sneakers despite price hikes.
The company's shares were up about 10% in premarket trading after it also raised its annual margin forecasts.
Affluent consumers in the United States, On's biggest market, continue to splash out on items such as Coach handbags and Birkenstock clogs, in contrast to a broader slowdown in spending from lower-income households.
"Customers did not slow down buying our products even though we did some price increases as of the 1st of July... We actually increased our share of full-price sales in the quarter," CEO Martin Hoffmann told Reuters in an interview, adding that On customers tend to be less sensitive to price increases.
On's Cloudmonster running shoe range starts at $170, while its Roger Pro tennis shoes, developed in collaboration with Roger Federer, sell for $220.
Zurich-based On now expects 2025 net sales of 2.98 billion Swiss francs ($3.76 billion), up from 2.91 billion Swiss francs expected earlier, and it raised its gross profit margin forecast to 62.5% from a prior target range of 60.5% to 61%.
On reported third-quarter sales of 794.4 million Swiss francs, up 24.9% from the same period a year ago, and beating the average analyst forecast of 726.8 million Swiss francs, according to data compiled by LSEG.
The brand has been doing especially well with shoppers in Asia, with sales up 94.2% in the quarter.
EASILY DIGESTING TARIFF PRESSURES
On, like other sportswear brands, has been impacted by U.S. tariffs imposed on key manufacturing hubs Vietnam and China, and raised prices partly to mitigate the increased cost of importing its products. On's shares have fallen about 35% so far this year.
However, given strong sales, Hoffmann said no further price increases were planned in the coming months and the first part of 2026.
"We can easily digest the tariffs that we have, and we still drive a better margin than what we anticipated we will have," said Hoffmann.
In a discount-heavy sportswear market, Hoffmann said On will keep targeting full-price sales in the crucial holiday shopping season.
($1 = 0.7931 Swiss francs)
(Reporting by Juveria Tabassum in Bengaluru and Helen Reid in London; Editing by Vijay Kishore)
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