On (ONON) earnings Q3 2025

On raised its full-year forecast for the third straight quarter on Wednesday after the Swiss sportswear company bucked a slowdown in the sneaker market by posting another three months of double-digit growth.

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

The estimate is slightly above the 2.97 billion francs analysts expected, according to LSEG.

“Our focus on premium, full-price selling, innovation and the intersection between performance and design resonates very strongly with the consumer, and that really sets us apart,” CEO Martin Hoffmann told CNBC in an interview. he said. “You see it in the results. We have strong sales growth, we have strong margins, which shows that we are fully committed to full-price sales, and that’s true across all our channels.”

The sportswear company beat Wall Street expectations on both the top and bottom lines in the third quarter of fiscal 2025.

Here’s how On performed compared to Wall Street’s expectations, according to a survey of analysts conducted by LSEG:

• Earnings per share: 43 cents in francs versus the expected 25 cents
• Revenues: 794 million francs versus 763 million francs expected

The company’s reported net income for the three months ended Sept. 30 was 118.9 million francs, or 36 cents per share, compared to 30.5 million francs, or 9 cents per share, a year earlier.

When it reported earnings of 43 cents per share, excluding one-time items.

Sales rose nearly 25% to 794.4 million francs, from about 636 million francs a year earlier.

Ten’s positive results come as competitors like Nike and Hoka are planning either a decline in sales or a slowdown in growth as discretionary spending stagnates and tariffs eat into customers’ wallets. In late September, Nike said it expected sales to fall by a low-single-digit percentage in the quarter, which typically runs from early September to early December, as it worked to reignite innovation and streamline operations. deckhandsThe parent company behind On’s popular shoe brand Hoka lowered its sales forecast for Hoka in October.

Meanwhile, On is raising sales expectations as it prepares for the holiday shopping season. Retail analysts expect much of the industry to lean heavily on discounts and promotions to boost demand during the critical holiday shopping season, but co-founder and executive co-chairman Caspar Copetti said On won’t even offer a Black Friday sale.

It will be “full price throughout the holiday season,” Coppetti said in an interview with CNBC. “This is against the backdrop of a very competitive and very discount-focused environment at the moment, and so this leveling up that we’ve done and then being able to command a much higher selling price really sets On apart.”

While On is often sold alongside brands like Nike, Hoka and Brooks Running, its vacation strategy is similar to luxury brands. It is part of the company’s strategy to become the highest quality sportswear brand on the market by offering not only the highest prices but also the most innovative products in footwear and clothing.

Still much smaller than many of the legacy brands it competes with, On is slowly whittling away market share through innovation that industry leader Nike has been criticized for lagging behind.

Last year, On launched the Cloudboom Strike LS, which features “LightSpray” technology that turns it into a performance running shoe in minutes using a spray gun. Runner Hellen Obiri was wearing these shoes when she broke the women’s record by almost three minutes at the New York City Marathon earlier this month.

“This is a very strong confirmation,” Coppetti said. “Runners are now really paying attention to what people are wearing when they’re racing, because those innovations are trickling down and influencing their choices.”