Companies /Consumer Cyclical

On Holding AG Class A

NYSE: ONON Footwear & Accessories
$27.99
▼ $0.37 (−1.30%) today
Markets closed · 7:32pm ET

Q2 2025 Earnings

Reported Aug 12, 2025, 6:06am ET · SEC source
$-0.12
Miss −154.72%
EPS · est. $0.21
$959.4M
Beat +36.27%
Revenue · est. $704.1M
−16.2%
Trailing market
ONON vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Aug 12Aug 13report 6:06am ETearnings+1.3%−5.1%
−12%−6%0+6%Aug 12Aug 13earnings+1.3%−5.1%
ONON −5.1%S&P 500 +1.3%
−12%−6%0+6%Aug 12Aug 13report 6:06am ETearnings+1.3%−5.1%
−12%−6%0+6%Aug 12Aug 13earnings+1.3%−5.1%
ONON −5.1%NASDAQ +1.3%
−12%−6%0+6%Aug 11Aug 20report 6:06am ETearnings+0.5%−11.7%
−12%−6%0+6%Aug 11Aug 20earnings+0.5%−11.7%
ONON −11.7%S&P 500 +0.5%
−12%−6%0+6%Aug 11Aug 20report 6:06am ETearnings−0.8%−11.7%
−12%−6%0+6%Aug 11Aug 20earnings−0.8%−11.7%
ONON −11.7%NASDAQ −0.8%
+8.95%
Day of report
−3.25%
Next session
−9.60%
One week
−13.89%
30 days

S&P 500 over the same 30 days: +2.29%.

Did ONON Beat Earnings? Q2 2025 Results

On Holding delivered a tale of two metrics in Q2 2025, posting revenue of $959.43 million, up 32.0% year-over-year and well ahead of the $704.08 million consensus estimate, while swinging to a GAAP loss that sent reported EPS to -$0.12 against a consensus expectation of $0.21, a miss of 154.72%. The culprit was a $179.16 million foreign exchange loss driven primarily by CHF/USD revaluation effects, which overwhelmed otherwise strong operational performance, including a gross profit margin expansion of 160 basis points to 61.5% and a 50.0% jump in adjusted EBITDA to $174.29 million. Direct-to-Consumer was the standout channel, with net sales surging 47.2% to $394.81 million, while Asia-Pacific led geographies with 101.3% growth. Despite the earnings miss, investors took comfort in raised full-year guidance, with On now targeting constant currency net sales growth of at least 31% and reported net sales of at least $3.73 billion, though management flagged new US reciprocal tariffs on Vietnam as an ongoing consideration embedded in that outlook.

Key Takeaways
  • DTC channel growing 47.2% and reaching 41.1% of net sales, a new Q2 high
  • Gross profit margin expansion to 61.5% driven by higher DTC mix, freight efficiencies, and favorable FX
  • Asia-Pacific net sales growth of 101.3% driven by Japan and China
  • Strong performance of Cloud 6 in Performance All Day vertical
  • Cloudsurfer and Cloudmonster franchises driving Performance Running growth
  • Apparel net sales surging 67.5% driven by Performance Running vertical
  • Operational efficiency gains reducing distribution expenses as percentage of net sales

“Our Q2 results leave no doubt: On is playing the long game. We achieved a remarkable 38.2% net sales growth on a constant currency basis, not by chasing trends, but by building a resilient brand for decades ahead. This quarter proves our strategy is working - from our diversified portfolio of iconic footwear franchises to our stellar growth in apparel and our global brand footprint. The future of On is taking shape right now, and the most exciting chapters are ahead of us.”

On Holding CEO, on the earnings call

Forward Guidance & Outlook

On raised its full-year 2025 guidance across all metrics. Net sales are now expected to grow at least 31% year-over-year on a constant currency basis (previously at least 28%), corresponding to reported net sales of at least CHF 2.91 billion at current spot rates (previously CHF 2.86 billion). Gross profit margin is now expected in the range of 60.5-61.0% (previously 60.0-60.5%). Adjusted EBITDA margin is now expected in the range of 17.0-17.5% (previously 16.5-17.5%). This guidance includes the impact of additional reciprocal tariffs per the US Presidential Executive Order issued on July 31, 2025, and continues to embed prudence given the still uncertain macro outlook.

ONON YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$300.0M$600.0M$900.0M$727.0M$959.4MRevenue$435.8M$590.1MGross Profit$60.6M$118.8MOperating Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating Income

ONON Revenue by Segment

Shoes$902.7M+29.9%
Wholesale$564.7M+23.1%
Direct-to-Consumer$394.8M+47.2%
Apparel$47.0M+67.5%
Accessories$9.9M+133.3%

ONON Revenue by Geography

Americas$553.6M+16.8%
EMEA$253.3M+42.9%
Asia Pacific$152.6M+101.3%

Figures from SEC filings and company reports. Not investment advice.