On Holding lifts annual outlook after strong Q2 sales beat, shares jump

Investing.com -- On Holding (NYSE:ONON) shares soared around 10% in premarket trading on Tuesday after the Switzerland-based sportswear maker beat analyst expectations for second-quarter sales and raised its full-year outlook.

The company reported a 32% year-over-year increase in net sales to CHF 749.2 million, or 38.2% on a constant currency basis, exceeding consensus expectations of CHF 703.8 million.

Adjusted earnings per share (EPS) came in at negative CHF 0.09, well below the analysts’ estimate of CHF 0.14.

Direct-to-consumer sales rose 47.2% to CHF 308.3 million, up 54.3% on a constant currency basis.

Wholesale sales grew 23.1% to CHF 441.0 million, or 28.8% on a constant currency basis. 

Adjusted EBITDA rose 50% to CHF 136.1 million from CHF 90.8 million a year earlier, with the margin improving to 18.2% from 16.0%.

"We’re one and a half years into our three-year strategic plan, and the results of our consistent execution and unwavering focus are clearly visible in the outstanding numbers we report today," said Martin Hoffmann, CEO and CFO of On. 

Citing strong recent performance and greater confidence in its outlook, the company raised full-year guidance across all key metrics.

Net sales are now expected to grow at least 31% year-over-year on a constant currency basis, up from at least 28% previously. At current exchange rates, this equates to reported net sales of at least CHF 2.91 billion, compared with CHF 2.86 billion in the prior outlook.

The company now sees gross profit margin at 60.5–61.0%, versus 60.0–60.5% previously, and adjusted EBITDA margin at 17.0–17.5%, compared with 16.5–17.5% before.

The updated guidance factors in the impact of additional reciprocal tariffs under the U.S. Presidential Executive Order issued on July 31, 2025, On said.