On Holding AG’s Triple-Threat Play: Asia-Pacific Surge, Premium Brand Momentum, and Trade Tailwinds Signal Buy Opportunity

The first quarter of 2025 has cemented On Holding AG’s position as a disruptive force in the global athletic apparel market. With Asia-Pacific sales soaring 130% year-over-year and full-year guidance raised to 28% constant-currency growth, the Swiss sportswear giant is no longer just a niche player—it’s a best-of-breed opportunity in an industry ripe for consolidation. Here’s why investors should act now.

Asia-Pacific’s Explosive Growth: A Blueprint for Global Dominance

On’s Q1 results revealed a staggering CHF 120.6 million in Asia-Pacific net sales, a region now accounting for 12% of its total revenue—a jump from just 8% in 2024. This triple-digit expansion isn’t a fluke. The company’s direct-to-consumer (DTC) strategy—driven by 45% global DTC growth—and its premium product launches (e.g., Cloudsurfer 2, Cloud 6) are resonating in markets like China, Japan, and Southeast Asia, where disposable income is rising and fitness culture is booming.

Crucially, On is capitalizing on underpenetrated markets. While Europe and the U.S. are mature, Asia-Pacific’s sportswear market is still in its infancy, with On’s brand equity now rivaling Nike and Adidas in key urban centers. The company’s wholesale partnerships and DTC stores are fueling this momentum, but its supply chain resilience—producing locally in APAC to avoid tariffs—is equally critical.

Premium Brand Momentum: Collaborations as Strategic Weapons

On’s collaborations with luxury brand Loewe and global icon Zendaya are masterstrokes of premium brand building. The Cloudventure Loewe 2, priced at $320, isn’t just a shoe—it’s a status symbol merging athletic performance with high-end fashion. Zendaya’s campaigns, meanwhile, have amplified On’s head-to-toe sportswear vision, driving 99% growth in accessories and 93% in apparel.

This brand differentiation is key. While competitors battle on price, On is owning the $200+ premium segment, where margins are fat and consumer loyalty is sticky. The Q1 adjusted EBITDA surge (54.8% to CHF 119.9 million) proves profitability is scaling alongside sales.

Trade Policy Tailwinds: A Shield Against Global Uncertainties

While trade tensions between the U.S. and China simmer, On’s regionalized supply chain—with production hubs in EMEA, Americas, and APAC—acts as a tariff-proof moat. The U.S.-UK “tariff truce” may offer marginal relief, but On’s true advantage lies in its self-sufficiency: local manufacturing avoids import duties entirely.

The company’s guidance assumes no further tariff escalation—a prudent bet given its diversified model. Even if trade wars intensify, On’s cost-control initiatives (targeting 13–14% EBITDA margins) and price adjustments provide a buffer. Meanwhile, 90% of S&P 500 firms cite tariffs as a headwind, making On’s insulation a rarity.

Why Act Now?

• Asia-Pacific is the new engine: 130% growth in Q1 signals a multiyear opportunity as the region’s middle class expands.
• Premium pricing power: On’s collaborations and DTC dominance allow it to command higher margins than peers.
• Structural resilience: A supply chain built for trade volatility positions it to outperform in a recessionary climate.

The 28% sales growth guidance isn’t just ambitious—it’s achievable. With a net income decline (38%) masked by forex headwinds and one-time costs, the fundamentals are stronger than the top line suggests.

Final Call: Buy On Holding AG Before the Crowd Catches On

On Holding AG is at an inflection point. Its Asia-Pacific dominance, premium brand equity, and trade-resistant supply chain form a trifecta of growth and stability. With the stock trading at just 22x forward EV/EBITDA (vs. Nike’s 28x), there’s room to run.

This is a decisive moment for investors: On isn’t just a sportswear company—it’s a global brand with a blueprint for disruption. The question isn’t whether to buy, but how much.

Act now, before the market fully prices in On’s potential.