TLDR
- Q2 2025 net sales up 38% at constant currency to CHF 749.2M; gross margin at 61.5%
- Net loss of CHF 40.9M due to FX effects, compared to profit last year
- DTC sales up 54.3% YoY; APAC sales growth over 110% at constant currency
- Apparel sales jumped 75.5%, signaling growth beyond footwear
- FY25 outlook raised with sales expected to hit CHF 2.91B, EBITDA margin 17–17.5%
As of 12:52 PM EDT on August 13, 2025, On Holding AG (NYSE: ONON) traded at $48.43, down 2.77%, after releasing Q2 results that showcased robust top-line growth, improved margins, and an upgraded outlook, despite foreign exchange-driven losses.
Revenue Performance and Margins
For the quarter ended June 30, 2025, net sales reached CHF 749.2 million, up 38% year-over-year at constant currency, and 32% on a reported basis. Gross profit margin improved by 160 basis points to 61.5%, while adjusted EBITDA margin expanded 220 basis points to 18.2%.
Direct-to-consumer (DTC) sales surged 54.3% year-over-year at constant currency to CHF 308.3 million, making up 41.1% of total sales. Wholesale revenue climbed 28.8% at constant currency to CHF 441 million.
👟On Running Q2 Earnings One Pager!$ONON +13% First Reaction 🟢
🚨HUGE Top-line beat, but Massive 140M FX Loss
Revenue CHF 749.2M +32% 🟢 HUGE BEAT (Est 704M)
Net Income – CHF 41M -233% 🥶
FCF CHF 85M -2% 🟢 HUGE BEAT (Est 2M)Shoes Revenue +30% 🟢
Apparel Revenue +67.5% 🟢… pic.twitter.com/1rmn5CGMyb— Ray Myers (@TheRayMyers) August 12, 2025
Regional and Category Growth
By region, EMEA sales advanced 46.1% year-over-year at constant currency, Americas gained 23.6%, and APAC posted triple-digit growth of 110.9%.
From a product perspective, shoes brought in CHF 704.9 million in sales, up 36% at constant currency, while the apparel segment posted an impressive 75.5% growth, reaching CHF 36.7 million.
Profitability and Currency Impact
Despite operational gains, On Holding reported a net loss of CHF 40.9 million, compared to a profit of CHF 30.8 million in the prior year. The loss was driven by unrealized foreign exchange impacts tied to US dollar-denominated assets.
Adjusted net loss was CHF 29.7 million, or CHF 0.09 per Class A share, versus an adjusted profit of CHF 46.9 million a year earlier. Operating profit more than doubled to CHF 92.8 million from CHF 47.3 million.
Operational Challenges
The company faced new tariff rates, 40% on Vietnamese imports and 39% on Indonesian imports, which could pressure costs. Management also flagged the weaker US dollar against the Swiss franc as an ongoing headwind.
Upgraded FY25 Outlook
Following strong first-half momentum, On Holding raised its full-year 2025 guidance. Net sales are now expected to be at least CHF 2.91 billion, up from CHF 2.86 billion, representing at least 31% growth at constant currency. Adjusted EBITDA margin is forecast between 17.0% and 17.5%, compared to the previous 16.5–17.5% range.
Balance Sheet and Store Expansion
The company ended the quarter with CHF 846.6 million in cash and an inventory balance of CHF 360.4 million. Its retail footprint expanded to 54 company-operated stores worldwide.
