On Holding's Q1 2025: Navigating Contradictions in Tariffs, Growth Strategies, and Apparel Performance

Tariff mitigation and pricing strategy, wholesale expansion strategy, apparel growth and strategic focus, automation and DTC growth, apparel growth and strategy are the key contradictions discussed in On Holding's latest 2025Q1 earnings call.



Revenue and Market Growth:
- ON Holding AG reported net sales of CHF725 million for Q1 2025, reflecting a year-over-year growth of 40% on a constant currency basis.
- This increase was driven by the strength of the direct-to-consumer business and its increased share.

Premium Brand Positioning and Margin Expansion:
- The company's gross profit margin increased to 59.9%, up from 59.7% in Q1 2024.
- This expansion was attributed to the company's focus on a premium brand position and operational efficiency.

Apparel Segment Performance:
- Apparel net sales reached CHF38.1 million, increasing by 93.1% year-on-year.
- Growth in this segment was driven by successful product launches and strategic brand campaigns.

Regional Performance and Brand Awareness:
- The Asia Pacific region showed significant growth with net sales increasing by 130.1% year-over-year on a reported basis.
- This was attributed to effective brand campaigns and market-specific initiatives.