On Holding (NYSE:ONON) saw its stock jump roughly 10% in premarket trading on Tuesday after the Swiss sportswear brand delivered second-quarter revenue well above Wall Street expectations and lifted its full-year guidance.
Net sales climbed 32% year-over-year to CHF 749.2 million, or 38.2% when adjusted for currency fluctuations, surpassing the analyst consensus of CHF 703.8 million. Adjusted earnings per share (EPS) were negative CHF 0.09, missing forecasts that called for CHF 0.14 in profit.
The company’s direct-to-consumer business continued to expand rapidly, with sales up 47.2% to CHF 308.3 million — or 54.3% in constant currency terms. Wholesale revenue advanced 23.1% to CHF 441.0 million, equivalent to a 28.8% rise on a constant currency basis.
Adjusted EBITDA increased 50% to CHF 136.1 million from CHF 90.8 million in the prior-year period, while margins improved to 18.2% from 16.0%.
“We’re one and a half years into our three-year strategic plan, and the results of our consistent execution and unwavering focus are clearly visible in the outstanding numbers we report today,” said Martin Hoffmann, CEO and CFO of On.
Backed by robust recent performance and greater confidence in its trajectory, On lifted guidance for every key metric. The company now expects full-year net sales growth of at least 31% year-over-year on a constant currency basis, up from the prior forecast of at least 28%. At current exchange rates, that translates to reported net sales of no less than CHF 2.91 billion, compared to the earlier outlook of CHF 2.86 billion.
The gross profit margin forecast has been raised to a range of 60.5%–61.0%, versus the prior 60.0%–60.5%. Adjusted EBITDA margin is now expected between 17.0% and 17.5%, compared with the earlier 16.5%–17.5% range.
On noted that the revised guidance accounts for the effects of additional reciprocal tariffs under the U.S. Presidential Executive Order issued on July 31, 2025.
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