The Roger model, named after former tennis player and corporate investor Roger Federer, is on display at the Swiss shoe manufacturer On’s store in Zurich, Switzerland, on August 28, 2025.
Dennis Bariboos | Reuters
Swiss sneaker maker On Holding fell 11% in pre-market trading even as it issued guidance for another year of strong growth and reported record sales and improved profitability in 2025.
The brand, which sells premium-priced athletic shoes and apparel, reported fourth-quarter net sales of CHF743.8 million ($946 million), an increase of 30.6% on a constant currency basis, beating LSEG’s forecast of CHF723.5 million.
For the full year, sales exceeded CHF3 billion for the first time, slightly exceeding expectations of CHF2.99 billion.
The fast-growing brand said it expects 2026 net sales to increase by at least 23% on a constant currency basis. At current spot rates, that would mean sales of at least CHF3.44 billion, while sell-side analyst consensus had expected sales to be closer to CHF3.7 billion this year, the company said. The company expects adjusted EBITDA margin to be between 18.5% and 19%.
In Tuesday trading, On shares were flat since the beginning of the year.
On is currently in the third and final year of its strategy to double its sales to CHF 3.55 billion and increase its EBITDA margin to at least 18% by 2026, with the aim of becoming “the most premium global sportswear brand.”
The company went public on the New York Stock Exchange in 2021 and was able to gain market share from traditional competitors such as: nike and adidas We focus on innovative products and performance footwear and apparel.
“Across the world, we are witnessing a fundamental social shift as people replace traditional indicators of status with a commitment to health, longevity and performance,” said David Aleman, co-founder and executive chairman of the company. “On is uniquely positioned to give this discerning consumer what they want.”
The company also said that its profitability reached a new record high for the full year.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter rose by 31.8% to CHF131 million, reflecting an 18.8% margin and exceeding LSEG’s forecast of CHF112.4 million. The company said the beat reflects operational efficiency and the strength of its brand positioning.
Asia Pacific clearly stood out, with sales in this region increasing by 85.1% on a constant currency basis. In the three months to December, the Americas and EMEA grew by 21.3% and 27.5%, respectively.
“The strength of our premium strategy allows us to exceed our lofty goals, while providing the flexibility to reinvest in high-return areas that we expect to drive our growth for years to come,” CEO Martin Hoffmann said in a statement.
In the previously reported quarter, On raised its earnings estimates for the third time in a row, beat expectations on both revenue and bottom line, and raised its stock price by 18%, surprising investors with the upside. The company also said it will not offer any sales during the shopping season as it aims to be a premium brand.
Stocks have been largely flat since the start of the year, with some analysts suggesting challenges will increase in 2026, and stock valuations don’t fully reflect these risks.
“As the pricing environment tightens and competition increases, premium positioning alone may not be enough to sustain price-led growth without risking increased demand and promotional activity,” Randall Connick, a Jefferies analyst who rates underperforming stocks, said in late February.
– CNBC’s Gabriel Fonrouge contributed to this report
