Financial Data and Key Metrics Changes - The company has raised its sales targets multiple times and is tracking ahead of its 2026 margin targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with significant innovations planned for products like the Cloudmonster and Cloudsurfer, which are expected to enhance market relevance [17][18] - The apparel segment, particularly in tennis, is the fastest-growing part of the business, driven by collaborations that appeal to younger demographics [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with the Asia Pacific region outpacing expectations [9] - Brand awareness is between 25%-30%, indicating a significant opportunity for growth as 75% of potential customers are not yet familiar with the brand [25] Company Strategy and Development Direction - The company aims to maintain its premium positioning while expanding its addressable market through innovation and brand awareness [5][10] - There is a focus on balancing growth and margins, with a commitment to reinvest in product development and marketing to sustain brand momentum [28][29] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the brand's growth trajectory, with guidance to achieve 30% growth over the next three years while maintaining a 23% growth rate next year [34] - The importance of team culture and talent acquisition was highlighted as a key factor in sustaining brand strength and innovation [35] Other Important Information - The company is focused on avoiding discounting practices to maintain its premium brand image, especially during the holiday season [11][12] - Automation in manufacturing is seen as a critical future direction, with the introduction of products like LightSpray aimed at enhancing production efficiency [32] Q&A Session Summary Question: How does the company view the balance of wholesale growth? - The company sees wholesale growth coming from new partners, new doors, and same-store sales, emphasizing the need to start with customer awareness [25] Question: What is the company's approach to managing growth and margins? - The management stated that high margins should not come at the expense of innovation and investment, aiming for a balance that supports growth while maintaining healthy margins [27][28] Question: How does the company plan to address potential tariff impacts? - The company has implemented pricing and supply chain efficiencies as mitigation strategies, which are expected to remain even if tariffs are rolled back [31]

Core Insights - On Holding AG's stock surged nearly 20% following a strong third quarter performance, indicating that the company is outperforming competitors like Nike and Adidas [1] Financial Performance - The Asia-Pacific business grew 85% year-to-date, now accounting for over 10% of global sales, with record results in China and Japan [2] - On achieved a gross profit margin of 60.1% year-to-date, raising its full-year outlook to approximately 60.5%, which is an increase of 50 basis points from previous guidance [3] - Direct-to-consumer (D2C) sales increased by 50%, supported by the expansion of owned stores, contributing to record holiday momentum [5] Strategic Initiatives - The company maintained a full-price strategy, achieving significant sales without discounts, showcasing its brand strength [3] - The introduction of LightSpray, a next-generation manufacturing technology, has the potential to revolutionize footwear production and enable cost-effective nearshoring [6] Brand Development - Brand recognition has increased significantly, with a 30 percentage point rise in saturated markets like Switzerland, driven by cultural figures such as Zendaya and Roger Federer [6] - Apparel sales reached their highest monthly figures in October, and the upcoming Cloud 6 line will increase prices by an additional $10 per pair [5] Market Position - With expanding gross margins, rapid growth in Asia, and innovative advancements, On is positioning itself as a potential global sportswear giant rather than just a niche running brand [7]

Innovation & Technology - On introduces LightSpray, a new automated manufacturing technique for sneaker uppers, reducing production time significantly [1][2] - The LightSpray technology uses a polymer sprayed onto a foot mold by a robot, creating a seamless shoe without glue or laces [4] - LightSpray significantly reduces labor needed, enabling production closer to consumers [3] Sustainability & Efficiency - On claims LightSpray reduces carbon emissions by approximately 75% compared to conventional shoe making [7] - Traditional shoe production involves around 200 steps, while On aims to reduce this to a handful with LightSpray [4] Market & Production - On's net sales have grown in 11 out of the past 13 quarters since going public in 2021, gaining ground on competitors [2] - The Cloud Boom Strike LZ, On's first shoe featuring LightSpray, weighs 170g (approximately a third of a pound) [5] - On aims to scale LightSpray production from thousands to millions of pairs and expand its application to other wearables [8] Business Expansion - On opened its first LightSpray factory in Zurich and is considering expanding production to countries like the US [3][7][8] - Early LightSpray models have been worn by athletes like Helen Obree, who won the Boston Marathon in 2020 [6]