Swiss sportswear brand On is sprinting ahead of the competition. The sneaker maker’s shares jumped more than 20% on Wednesday after it raised its full-year sales forecast for the third straight quarter, thanks to another round of double-digit growth that defies the global sneaker slowdown.
🚀 Record Growth, Stronger Forecast
The company — known for its high-tech, cloud-like running shoes — now expects fiscal 2025 sales to hit 2.98 billion Swiss francs ($3.72 billion), up from a previous forecast of 2.91 billion francs.
On a constant currency basis, sales are projected to rise 34% year-over-year, beating the earlier 31% growth outlook. That’s also slightly ahead of analysts’ expectations of 2.97 billion francs, according to LSEG data.
“Our focus on premium, full-price sales and innovation is really resonating with consumers,” said CEO Martin Hoffmann in an interview with CNBC. “We’re growing strongly, maintaining margins, and setting ourselves apart from the rest of the market.”
💰 Big Earnings Beat
For the quarter ending September 30, On outperformed Wall Street estimates on both profit and revenue:
| Metric | Reported | Expected (LSEG) |
|---|---|---|
| Earnings per share | 43 cents (adjusted) | 25 cents |
| Revenue | 794 million francs | 763 million francs |
Net income came in at 118.9 million francs (36 cents per share), up from just 30.5 million francs (9 cents) a year earlier — a nearly fourfold increase. Sales climbed 25% year-over-year to 794.4 million francs.
👟 Standing Out in a Slumping Market
While sneaker giants like Nike and Hoka are facing weaker sales and trimming forecasts, On continues to shine.
- Nike recently warned that its current-quarter sales could fall slightly as it refocuses on innovation.
- Hoka’s parent company, Deckers, cut its growth outlook in October.
In contrast, On isn’t just resisting the slowdown — it’s raising its targets as it enters the holiday shopping season.
“We’ll be full price through the holidays,” said co-founder Caspar Coppetti, noting the company will skip Black Friday discounts despite a market filled with markdowns. “In a discount-driven environment, our ability to command higher prices sets us apart.”
🧠 Innovation at Its Core
On has earned its reputation through cutting-edge design. Its “LightSpray” technology, used to create running shoes in minutes with a spray gun, debuted last year in the Cloudboom Strike LS model.
That innovation paid off in a big way: elite runner Hellen Obiri wore the shoes when she shattered the New York City Marathon women’s record by nearly three minutes earlier this month.
“That’s a huge validation,” Coppetti said. “Runners are paying attention — these innovations influence what they choose to wear.”
🏆 The Premium Playbook
Unlike many sneaker brands fighting over discounts, On is moving closer to luxury territory, emphasizing performance, design, and exclusivity.
The strategy is working — and with consistent growth, bold innovation, and no need for discounts, On is quickly lacing up to become the world’s most premium sportswear brand.
