On Holding: Form check passed

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  Wolfgang Hagl
  Redaktor

On the home stretch of the reporting season On Holding provided an insight into its latest business performance. The Zurich-based sports shoe and sneaker specialist has impressively confirmed its growth trajectory. At constant exchange rates, sales increased by 38.2% to CHF 749.2 million in the second quarter of 2025. On Holding benefited from particularly strong direct sales. Currency-adjusted sales increased by more than half. As a result, the direct-to-consumer (DTC) sales channel accounted for 41.1% of total sales – a record figure for the second quarter.

This development also helped the Zurich-based company to further increase its profitability. The gross margin amounted to 61.5% in the past three-month period, exceeding the previous year’s figure by 1.6 percentage points. The operating result (adjusted EBITDA level) accounted for 18.2% of sales, 220 basis points more than in the second quarter of 2024. “Our second quarter results leave no doubt: On is playing for the long term,” commented David Allemann, Co-Founder and Executive Co-Chairman of On Holding, on the latest results. Instead of chasing trends, the company is building a resilient brand for decades to come. “The future of On is taking shape and the most exciting chapters lie ahead,” enthused the top manager.

Forecast increased

In line with this optimism, the forecast has been raised. At constant exchange rates, On Holding now expects sales growth of at least 31% for 2025. Previously, the targeted growth rate was 28%. In terms of gross margin, the company is now targeting a range of 60.5% to 61.0% instead of the previously expected 60.0% to 60.5%. The adjusted EBITDA margin should land between 17.0% and 17.5% for the year as a whole. Until yesterday, the forecast corridor was one percentage point lower. In a press release, On Holding explicitly points out that the reciprocal tariffs announced by the USA on July 31 were taken into account in the outlook. The majority of On shoes come from Vietnam. Deliveries from there to the USA are now subject to a 40% duty.

In this respect, the strength of On Holding’s own brand and its ability to raise prices are now more important than ever. In July, the company imposed a 10% surcharge on its products. According to CEO Martin Hoffmann, further increases are no longer necessary this year. In any case, the interim report shows that On Holding is successfully standing up to big brands such as Nike and Adidas. New models, most recently the “Cloudsurfer Max” and “Cloudboom Max” shoes, appear to be meeting the tastes of sports and fashion-conscious consumers. On Holding’s collaboration with musician FKA Twigs and actress Zendaya also helps in this respect.

Positive reaction – despite the downer

Wall Street reacted enthusiastically: Yesterday, Tuesday, On Holding shares rose by almost 9% in New York trading. Apparently, investors were able to swallow the downer of the interim results: The bottom line is that On Holding slipped into the red in the second quarter of 2025, posting a loss of CHF 40.9 million. In the same period of the previous year, a net profit of CHF 30.8 million was recorded. Analysts had expected On Holding to remain in the black from April to June of the current year.

Investment Solution

The recent jump in the share price does not change the rather “unsportsmanlike” chart picture. The share has been moving in a downward trend since May. In order to escape this, On Holding would have to leave the USD 50 mark behind. The 200-day line is waiting just a little higher. Only if the share manages to break above the moving average could we speak of a trend reversal. It therefore takes some courage to take the strong figures as an opportunity to speculate on an upward breakout. For those who dare, the long mini future SD9BIU is an effective instrument. The UBS product participates in rising prices at On Holding with a current leverage of just under 5.

Leonteq offers a much more defensive investment alternative with the Barrier Reverse Convertible LTADIV. The first coupon payment is due on October 1. Based on the nominal value of CHF 1,000, it amounts to 11.00% p.a. As long as On Holding does not fall to or below the barrier of USD 30.8039, the BRC will be redeemed in full on the redemption date. If the cushion of currently 37.38% is not sufficient, the partial protection would lapse. The investment would then be exposed to the full price risk of the On share.