On Holding, the esteemed Swiss athletic brand, continues to demonstrate robust financial health, consistently surpassing market expectations. The company, co-chaired by tennis legend Roger Federer, recently announced a significant 25% surge in quarterly net sales compared to the previous year, reporting an impressive 794.4 million Swiss francs (approximately $994.2 million USD). These figures comfortably outperformed analysts' predictions of 770.4 million Swiss francs, reinforcing the brand's strong market position. The company's adjusted earnings also saw a healthy rise to 0.43 Swiss francs per share, exceeding the anticipated 0.28 Swiss francs.
This marks the third consecutive quarter that On Holding has revised its full-year financial projections upwards, a testament to its sustained momentum and effective business strategies. The company now forecasts a 34% increase in full-year sales on a constant-currency basis, an improvement from its previous estimate of at least 31%. Furthermore, On Holding anticipates a gross profit margin of approximately 62.5%, up from an earlier range of 60.5% to 61%, and an adjusted EBITDA margin surpassing 18.0%, an increase from the prior 17.0% to 17.5% forecast. A key element of this success is the brand's unwavering commitment to its premium pricing model, with executives confirming there will be no Black Friday discounts, emphasizing full-price sales throughout the holiday season.
This strategic approach, focusing on innovation, performance, and distinctive design, sets On Holding apart in a competitive landscape where some rivals grapple with tariff-related setbacks. CEO Martin Hoffmann highlighted that the company's ability to maintain its premium status and introduce advanced products at higher price points has allowed it to mitigate external economic pressures, even with the majority of its footwear imported from Asia. This focus on value and brand integrity resonates strongly with consumers, enabling the company to thrive and grow despite broader market challenges.
The remarkable performance of On Holding underscores the power of a strong brand identity, strategic pricing, and continuous innovation. By prioritizing premium quality and maintaining a direct connection with its consumers, the company not only navigates economic uncertainties but also sets a benchmark for sustainable growth in the global sportswear market. This success story is a vibrant example of how vision and dedication can lead to triumphant outcomes.