On Sportswear Raises Sales Guidance Amid Strong Growth

Zurich, Switzerland — On, the Swiss sportswear company known for its running shoes, has raised its sales forecast for the third consecutive quarter after reporting double-digit growth. The announcement comes as the company defies a slowdown in the sneaker market.

For fiscal year 2025, On now expects sales to reach 2.98 billion francs ($3.72 billion), up from its previous estimate of 2.91 billion francs. On a constant currency basis, sales growth is projected at 34%, increasing from an earlier forecast of 31%. This projection slightly exceeds analysts’ expectations of 2.97 billion francs, according to data from LSEG.

“Our focus on premium, on full-price sales, on innovation, on that intersection between performance and design is just resonating very strongly with the consumer,” said CEO Martin Hoffmann in an interview with CNBC. He added that the results demonstrate strong top-line growth and margins as the company remains committed to full-price sales across all channels.

In the third quarter of fiscal 2025, which ended on September 30, On reported a net income of 118.9 million francs, or 36 cents per share, compared to 30.5 million francs, or 9 cents per share, a year prior. Excluding one-time items, earnings reached 43 cents per share. Sales climbed to 794.4 million francs, marking a 25% increase from 636 million francs in the previous year.

While On flourishes, competitors like Nike and Hoka face forecasts of sales declines or growth slowdowns due to stagnant discretionary spending and increasing tariffs. In late September, Nike indicated it expects a sales drop in its current quarter as the company seeks to innovate and streamline operations.

In preparation for the holiday shopping season, On has raised its sales guidance. While most retailers are likely to rely on discounts, co-founder Caspar Coppetti stated that On won’t participate in Black Friday markdowns. “This is against the backdrop of a very competitive and very discount-driven environment,” he said. “Being able to command a much higher selling price really sets On apart.”

On’s approach, echoing luxury brands, aims to establish it as the premium sportswear brand through innovative products and higher pricing. While smaller than major competitors, On has carved a niche by focusing on innovation as industry leaders face criticism for slower developments. Recently, On launched its Cloudboom Strike LS shoes, made using a revolutionary spray-on method. Runner Hellen Obiri wore these shoes when she broke the women’s New York City Marathon record earlier this month.

“That’s a very strong validation,” Coppetti noted. “Runners pay attention to what others wear during races, as these innovations inform their choices.”