On ONON’s third quarter 2025 earnings

On raised its full-year guidance for the third straight quarter on Wednesday after the Swiss sportswear company posted another three months of double-digit growth, weathering a slowdown in the athletic footwear market.

The company, known for its innovative approach to running shoes, expects fiscal 2025 sales to reach 2.98 billion francs ($3.72 billion), up from its previous guidance of 2.91 billion francs, on a reported basis. On a constant currency basis, the company expects sales to grow 34% from the previous year, compared to its previous forecast of 31%.

The forecast is slightly higher than the 2.97 billion francs expected by analysts, according to LSEG.

“Our focus on premium products, on full-price sales, on innovation, on that intersection of performance and design resonates very strongly with the consumer, which is what really sets us apart,” CEO Martin Hoffmann told CNBC in an interview. “You see it in the results. We have strong revenue growth, we have a strong margin, which shows that we remain fully committed to full-price sales, and that’s across all of our channels.”

During the third quarter of fiscal 2025, the athletic apparel company beat Wall Street’s top and bottom line expectations.

Here’s how On performed compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 43 cents in adjusted francs, compared to 25 cents expected
• profit: 794 million francs, compared to 763 million francs expected

The company’s reported net income for the three-month period ending September 30 was 118.9 million francs, or 36 cents per share, compared with 30.5 million francs, or 9 cents per share, a year ago.

Excluding one-time items, the reported earnings were 43 cents per share.

Sales rose to 794.4 million francs, an increase of about 25% from about 636 million francs a year ago.

On’s results are as rosy as competitors like Nike Hoka projects either declining sales or slowing growth, as discretionary spending stagnates and tariffs eat away at shoppers’ wallets. In late September, Nike said it expects sales in the current quarter, which generally runs from early September to early December, to decline by a low percentage as it works to revive innovation and streamline operations. Deckerthe parent company behind the loud shoe brand Hoka, trimmed its sales guidance for Hoka in October.

Meanwhile, On is raising its sales guidance as it prepares for the holiday shopping season. Retail analysts expect most of the industry to rely heavily on discounts and promotions to drive demand during the critical holiday shopping season, but On won’t even offer a Black Friday discount, said co-founder and co-CEO Caspar Coppetti.

“It will be full price during the holiday season,” Copetti said in an interview with CNBC. “This is against the backdrop of a very competitive and very discount-driven environment currently, so this level that we have done, and then being able to get a much higher selling price, really sets Aon apart.”

While On is typically sold alongside brands like Nike, Hoka and Brooks Running, its holiday strategy is similar to that of luxury brands. It is part of the company’s strategy to be the most premium sportswear brand on the market by offering not only the highest prices but also the most innovative products in footwear and apparel.

Still much smaller than many of the legacy brands it competes with, On is slowly chipping away at market share mainly through innovation, with industry leader Nike being criticized for falling behind.

Last year, On launched its Cloudboom Strike LS with “LightSpray” technology, which creates high-performance running shoes using a spray gun in a matter of minutes. Runner Helen Obery was wearing the shoes when she broke the women’s record in the New York City Marathon by nearly three minutes earlier this month.

“This is a very strong confirmation,” Cobbetti said. “Runners are really paying attention to what people are wearing now when they’re running, because these innovations are cascading down and shaping their choices.”