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Investing.com -- On Holding reported better-than-expected results for the first quarter, and adjusted its guidance for the full year amid macroeconomic uncertainty.
The company’s shares slipped around 1% in premarket trading after the report.
The Swiss shoemaker reported earnings per share (EPS) of CHF0.17 for the quarter, exceeding the CHF0.15 analyst estimate. Revenue surged 43% year-over-year to CHF726.6 million, also ahead of the CHF680.5 million consensus.
Sales growth was strong across all regions. EMEA net sales rose 34% year-over-year to CHF168.6 million, slightly ahead of the CHF161.4 million forecast. In the Americas, sales climbed 33% to CHF437.4 million, while Asia Pacific more than doubled to CHF120.6 million, well above the CHF93.1 million estimate.
By channel, direct-to-consumer sales increased 45% to CHF276.9 million, topping expectations of CHF257.3 million. Wholesale revenue grew 42% to CHF449.7 million, compared to an estimate of CHF425.5 million.
“We saw On’s exceptional momentum from 2024 continue into 2025, delivering strong top-line growth in the first quarter, elevated further by product launches like the Cloud 6 and the Cloudsurfer 2," said Martin Hoffmann, co-CEO and CFO of On.
Adjusted EBITDA rose 55% year-over-year to CHF119.9 million, beating the CHF110.7 million consensus. Gross margin was 59.9%, slightly above both the prior year and analyst projections of 59.7%.
For full-year 2025, On Holding guided for revenue of CHF2.86 billion, below the CHF2.96 billion consensus and down from the previous forecast of CHF2.94 billion. The company expects net sales at constant currencies to grow at least 28%, up from its prior outlook of at least 27%, and roughly in line with the 28.3% estimate.
On noted that recent global trade policy changes have led to "higher levels of planning uncertainty," citing risks such as rising customs and freight costs, broader supply chain volatility, and significant depreciation of key operating currencies against the Swiss Franc.
"On is embedding this higher degree of uncertainty in its outlook and as a result, now expects its gross profit margin to be in the range of 60.0% - 60.5% and its adjusted EBITDA margin in the range of 16.5% - 17.5% for the full year," the company added.