On Holding AG's D2C Channel Drives 43% Sales Surge, Ranked Second in Trading Volume

On May 19, 2025, On Holding AG (ONON) saw a significant drop in trading volume, with a 39.67% decrease from the previous day, totaling 2.24 billion. Despite this, the stock price rose by 0.15%.

On Holding AG reported strong first-quarter 2025 results, with net sales reaching CHF726.6 million ($865.48 million), marking a 43% year-over-year increase. The company's direct-to-consumer (D2C) channel played a pivotal role in this growth, increasing by 45.3% year-over-year on a reported basis and 42.4% on a constant currency basis, reaching net sales of CHF 276.9 million ($330.13 million).

This robust performance led to an increased D2C share of 38.1% in the first quarter of 2025, up from 37.5% in the first quarter of 2024. The strength of the D2C business resulted in an increased gross profit margin of 59.9%.

Based on these strong results, On Holding AG raised its 2025 outlook, now expecting constant currency growth of at least 28%, with reported sales projected to reach at least CHF 2.8 billion ($3.34 billion). The company plans to raise U.S. prices starting in July to reinforce its premium brand positioning and cushion the impact of potential tariffs.

Despite a slight reduction in earnings margin forecasts, On Holding AG remains optimistic, projecting an ambitious 28% annual sales growth through 2025. The company's premium positioning strategy and strong D2C channel continue to drive its growth and profitability.