On in running for record third quarter

Swiss sportswear company On Holding AG has achieved new record results in the third quarter of the 2025 financial year, exceeding market expectations. Given the strong momentum, management raised its annual forecasts again on Wednesday.

Revenue for the period from July to September amounted to 794.4 million Swiss francs. This represents a 24.9 percent increase compared to the same quarter last year. Adjusted for currency fluctuations, revenue grew by 34.5 percent.

Revenue from apparel and accessories shows above-average growth

Revenue in its direct-to-consumer (D2C) channel increased by 27.6 percent (currency-adjusted +37.5 percent) to 314.7 million Swiss francs. The wholesale business saw a 23.3 percent increase (currency-adjusted +32.5 percent), reaching 479.6 million Swiss francs.

Revenue in the core footwear business grew by 21.1 percent (currency-adjusted +30.4 percent) to 731.3 million Swiss francs. Other categories experienced even stronger growth. Apparel revenue increased by 86.9 percent (currency-adjusted +100.2 percent) to 50.1 million Swiss francs, and accessories revenue rose by 145.3 percent (currency-adjusted +160.8 percent) to 13.0 million Swiss francs.

Asia-Pacific region remains growth engine

The Asia-Pacific region once again showed the most dynamic revenue development. Revenue there reached 144.9 million Swiss francs, almost double that of the same quarter last year (+94.2 percent, currency-adjusted +109.2 percent).

In the Americas, revenue grew by 10.3 percent (currency-adjusted 21.0 percent) to 436.2 million Swiss francs. In the EMEA region, which includes Europe, the Middle East and Africa, revenue increased by 28.6 percent (currency-adjusted +33.0 percent) to 213.3 million Swiss francs.

On more than triples its net profit

The gross margin increased to 65.7 percent from 60.6 percent in the prior-year quarter, driven by lower freight costs, favourable currency effects and efficiency improvements. Consequently, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 49.8 percent to 179.9 million Swiss francs.

Reported net profit amounted to 118.9 million Swiss francs, more than three times higher than the 30.5 million Swiss francs recorded in the same period last year. Adjusted for special items, quarterly net profit grew by 182.9 percent to 142.0 million Swiss francs.

Management raises annual forecasts again

For the first nine months of the current financial year, revenue reached 2.27 billion Swiss francs, an increase of 32.6 percent (currency-adjusted +37.3 percent) compared to the prior-year period. Net profit, however, decreased by 11.9 percent to 134.6 million Swiss francs.

Given the “outstanding” business performance in the latest quarter and “continued momentum”, the company has raised its annual forecasts once again. It now expects a currency-adjusted revenue increase of 34 percent to 2.98 billion Swiss francs for 2025. Furthermore, management anticipates an adjusted EBITDA margin of over 18.0 percent, up from the previously forecast 17.0 to 17.5 percent.

This article was translated to English using an AI tool.

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