Core Insights - ON Holding AG's apparel business saw a remarkable growth of 86.9% year-over-year in Q3 of fiscal 2025, reaching net sales of CHF 50.1 million, with constant currency growth at 100.2% [1][8] - The apparel segment is becoming increasingly significant, with sales penetration rising to 6.3% from 4.2% a year earlier, indicating strong global demand across various channels [2][8] Sales Performance - The growth in apparel sales was broad-based, occurring across direct-to-consumer and wholesale channels, as well as all major geographic regions [2][8] - The Performance Running and Performance Training verticals were identified as key contributors to the apparel growth, driven by increased consumer adoption and purchase frequency [3] Strategic Importance - Management views the apparel segment as a "company within the company," emphasizing its strategic relevance in attracting first-time buyers who may expand their purchases into other categories [3][4] - The brand's connection with customers is strengthening, as evidenced by selling over one million apparel items for the first time in Q3 [4] Market Position - ON Holding's shares have increased by 17.8% over the past month, slightly underperforming compared to the industry average of 19.3% [5] - The company trades at a forward price-to-earnings (P/E) ratio of 28.93, which is higher than the industry average of 18.32, indicating a premium valuation compared to competitors like Deckers and Dollar General [6] Financial Estimates - The Zacks Consensus Estimate for ON Holding's current financial-year sales suggests a year-over-year growth of 41.2%, while earnings per share are expected to decline by 12.7% [10] - Sales estimates for the current quarter (12/2025) are projected at CHF 894.52 million, with a year-over-year growth estimate of 29.41% [11]