Updated: November 12, 2025
On Holding AG (NYSE: ONON) delivered a muscular third‑quarter update before the bell and raised its full‑year guidance—sending the Swiss sneaker maker’s shares sharply higher in early trading. As of the pre‑market session this morning, ONON changed hands around $38, up roughly 8% from Tuesday’s close near $35.18. Reuters also flagged an early ~10% jump as the news hit, underscoring strong first reactions from investors. [1]
Key takeaways
- Record Q3 sales and profitability: Net sales rose 24.9% year over year to CHF 794.4 million, with both wholesale and direct‑to‑consumer channels contributing. Q3 gross profit margin reached 65.7% and adjusted EBITDA margin hit 22.6%, marking new highs. [2]
- Guidance raised across the board: Management now targets full‑year 2025 net sales of CHF 2.98 billion (at current FX) and expects a gross margin around 62.5% and adjusted EBITDA margin above 18%. [3]
- Regional momentum: Asia‑Pacific posted standout growth (about +94% year over year in Q3), while EMEA and the Americas also advanced. [4]
- Price resilience: Executives told Reuters that recent price increases have not deterred On’s largely affluent customer base; the company is not planning further hikes near‑term and has navigated tariff‑related cost pressures. [5]
What On reported
On’s investor update paints a picture of broad‑based demand and expanding profitability:
- Sales mix: Q3 net sales reached CHF 794.4M, up 24.9% year on year, with wholesale +23% and DTC +27%. [6]
- Margins & earnings quality:Gross margin climbed to 65.7% (helped in part by ~200 bps one‑off freight/cost tailwinds), while adjusted EBITDA margin improved to 22.6%. Adjusted diluted EPS came in at CHF 0.43. [7]
- Geography & categories: Q3 net sales grew +28.6% in EMEA, +10.3% in the Americas, and +94.2% in Asia‑Pacific. Footwear remains the core engine, with apparel and accessories scaling off a smaller base at faster rates. [8]
For readers tracking results in U.S. dollar terms, the Associated Press tallied Q3 net income of approximately $148.6 million, or $0.42 per share GAAP and $0.50 adjusted. (Measures differ from IFRS figures above due to methodology and currency.) [9]
Guidance: what changed and why it matters
The company raised 2025 guidance for the third time this year, reflecting momentum heading into the holiday quarter:
- Net sales: now CHF 2.98B at current spot rates, implying ~34% constant‑currency growth.
- Gross margin: now ~62.5% for the year (previously ~60.5–61%).
- Adj. EBITDA margin: now >18% (previously ~17–17.5%). [10]
Management framed the outlook upgrade around premium brand positioning, strong full‑price sell‑through, and operational efficiencies. Reuters added context from leadership: higher prices (introduced mid‑year) haven’t dampened demand, and On doesn’t anticipate further hikes near‑term—helpful for sustaining volumes into December while preserving pricing power. [11]
Why ONON is rallying today
- Beat and raise narrative: Investors typically reward a clean “beat/raise” setup, and On delivered both—plus evidence of margin expansion. [12]
- Demand durability at the high end: The brand’s customer base—skewing toward higher income—has been less sensitive to inflation and selective price increases, a point management emphasized today. [13]
- International growth lever: Asia‑Pacific’s surge indicates On is still early in its global runway, giving bulls another leg to the growth story beyond North America. [14]
Pre‑market action reflects that setup: shares traded around $38—roughly 8–9% above yesterday’s close—with some feeds showing even stronger early prints as headlines crossed. Keep in mind pre‑market liquidity is thinner and moves can be exaggerated. [15]
Earnings call and near‑term catalysts
On’s earnings call is scheduled for 8:00 a.m. ET today. Management typically fields questions on holiday demand, inventory, DTC traction, and gross‑margin sustainability into next year. Dial‑in numbers and a webcast link are available on the company’s investor relations site. [16]
What to watch next:
- Holiday sell‑through and promotions: The brand’s bias toward full‑price sales is a profit tailwind if it holds through peak season. [17]
- Freight/cost normalization: One‑off cost benefits helped Q3 margins; the degree of persistence will matter for 2026 models. [18]
- China/Asia momentum: Whether triple‑digit APAC growth can normalize at a still‑healthy pace will shape 2026 expectations. [19]
How the Street is positioned
Aggregators still skew positive on ONON, with a “Strong Buy” consensus and an average 12‑month target near $62, implying notable upside if execution continues. (Targets vary by source and change frequently.) [20]
Bottom line
On’s Q3 print extends the company’s premium‑growth playbook: faster sales, fatter margins, and a credible raise into year‑end. With the stock jumping pre‑market, the focus now shifts to the call—and to whether management can convince investors that today’s margin wins and global traction are durable through 2026. [21]
Disclosure: This article is for information only and is not investment advice. Always do your own research and consider your risk tolerance before making financial decisions.
References
1. stockanalysis.com, 2. investors.on-running.com, 3. investors.on-running.com, 4. investors.on-running.com, 5. www.reuters.com, 6. investors.on-running.com, 7. investors.on-running.com, 8. investors.on-running.com, 9. www.ctpost.com, 10. investors.on-running.com, 11. www.reuters.com, 12. investors.on-running.com, 13. www.reuters.com, 14. investors.on-running.com, 15. stockanalysis.com, 16. investors.on-running.com, 17. www.reuters.com, 18. investors.on-running.com, 19. investors.on-running.com, 20. stockanalysis.com, 21. www.reuters.com
