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The running shoe manufacturer On has had a good second quarter. (archive image)
Keystone
Running shoe manufacturer On once again achieved record sales in the second quarter of 2025 and further increased its profitability. Against this backdrop, the outlook for the year as a whole has been raised.
Sales climbed by 32 percent year-on-year to 749 million Swiss francs, as the Zurich-based company, which is listed in New York, announced on Tuesday. Adjusted for currency effects, the increase was as much as 38 percent. Growth came from all regions and product categories.
The main growth driver was the direct customer business (DTC), which increased by 47 percent to CHF 308 million and reached a new high with a 41 percent share of total sales. In terms of product categories, clothing (+68% to 37 million) and accessories (+133% to 7.7 million) grew much more strongly than the core business with shoes (+30% to 705 million). However, with a 94% share of sales, this clearly remains the company's most important pillar.
In America, the largest market, sales rose by 17% to CHF 432.3 million. In the EMEA region (Europe, Middle East, Africa), sales increased by 43% to CHF 197.8 million. Asia-Pacific once again saw the most dynamic growth, with On more than doubling its sales to CHF 119 million.
Adjusted EBITDA rose by 50 percent to CHF 136 million, while the margin increased from 16.0 percent to 18.2 percent. According to On, this is primarily due to the higher proportion of higher-margin direct customer business, efficiency gains in production and operations as well as positive currency effects.
Nevertheless, the bottom line was a loss of CHF 41 million after a profit of CHF 31 million in the same quarter of the previous year. The decline was mainly due to exchange rate effects, CEO Martin Hoffmann told AWP.
The weakening of the US dollar against the Swiss franc led to negative valuation effects on assets held in dollars. "This is a temporary effect that can be reversed and has nothing to do with the financial health of the company," emphasized Hoffmann.
In view of the strong performance, the company, in which Roger Federer also holds a stake, is raising its forecast for the full year 2025. Currency-adjusted sales growth of at least 31% is now expected (previously 28%), which corresponds to at least CHF 2.91 billion at current exchange rates.
The adjusted EBITDA margin is expected to be between 17.0 and 17.5% (previously 16.5-17.5%). The additional tariffs imposed by the USA on July 31 are also included.
12.08.2025, 11:37
