On Holding lifts FY25 outlook as Q3 2025 sales surge

Core Insights - On Holding reported a significant sales growth of 24.9% year-on-year in Q3 2025, reaching SFr794.4m (£998m), with a 34.5% increase in constant currency [1][2] - The company has raised its 2025 outlook to a projected 34% constant-currency net sales growth, estimating reported net sales of SFr2.98bn [4] Financial Performance - Net income for Q3 2025 rose to SFr118.9m, compared to SFr30.5m in Q3 2024 [2] - Adjusted EBITDA increased to SFr179.9m, with a margin of 22.6% [2] - For the first nine months of 2025, net sales increased by 32.6% to SFr2.27bn, and adjusted EBITDA soared by 51.2% to SFr436m [3] Product Category Performance - Footwear sales increased by 21.1% to SFr731.3m, apparel surged by 86.9% to SFr50.1m, and accessories rose by 145.3% to SFr13m [2] - Direct-to-consumer sales grew by 27.6% to SFr314.7m, while wholesale sales rose by 23.3% to SFr479.6m [2] Regional Performance - EMEA region sales increased by 28.6%, the Americas by 10.3%, and Asia-Pacific saw a remarkable growth of 94.2% [3] Operational Efficiency - Gross margin improved to 65.7%, driven by operational efficiencies and reduced freight costs [1] - Cash and cash equivalents stood at SFr961.8m as of 30 September 2025 [3] Strategic Outlook - The company highlighted brand momentum, recent athletic achievements, collaborations, and new store openings in key locations such as Palo Alto, Zurich, and Tokyo [4] - Co-founder Caspar Coppetti emphasized the company's focus on innovation and performance, which continues to build consumer trust and strengthen the business core [5][6]