On Holding (NYSE: ONON) shares soared in early Wednesday trading after the company reported better-than-expected Q3 results and raised its full-year outlook. CEO Martin Hoffmann highlighted strong sales momentum heading into the critical holiday quarter.
"We delivered an outstanding and strong quarter, significantly exceeding expectations, which gives us confidence for Q4," Hoffmann stated. "Early November performance already shows exceptionally robust growth trends."
For fiscal 2025, On Holding now expects net sales growth of at least 34% year-over-year, up from its previous guidance of 31%. The company had projected reaching $4.44 billion in net sales by 2026 at its 2023 Investor Day, implying a 26% annual growth rate. Hoffmann noted the company is now tracking well ahead of that target.
Bloomberg data shows On Holding's Q3 EPS reached 0.43 Swiss francs ($0.54), beating the 0.27 Swiss francs ($0.34) consensus estimate. Revenue hit 794.4 million Swiss francs ($993 million), also surpassing the 767.5 million Swiss francs ($960 million) expectation. The company additionally guided for higher-than-expected margins.
Asia-Pacific led Q3 revenue growth, with currency-adjusted sales more than doubling in the region. Hoffmann attributed APAC's expansion to its "younger" consumer base seeking premium differentiation from mass-market offerings.
In the Americas, sales grew 21% as the brand attracted new customers through tennis and training shoe categories. Hoffmann emphasized On's strategy to broaden its age demographic, particularly by engaging younger consumers via ambassadors like Zendaya, while "filling white space through premium positioning."
Prior to earnings, On Holding shares had declined approximately 35% alongside broader footwear sector weakness. Competitors Nike (NYSE: NKE) and Deckers Outdoor (NYSE: DECK) have fallen 16% and 59% year-to-date respectively.
Citi analyst Paul Lejuez suggested pre-earnings concerns about Nike's recovery trajectory may have pressured On's stock. Hoffmann dismissed competitive worries, stating: "We're on our own path with the vision to become the most premium sportswear brand globally."
Telsey Advisory Group's Cristina Fernández noted strong brand health pre-earnings, citing robust store traffic and minimal promotional activity. Hoffmann confirmed rising full-price sales penetration, a trend expected to continue.
Innovative products like Cloudsurfer and Cloudsurfer Max maintained consumer demand despite July price increases due to tariff adjustments. For 2026, On Holding plans to launch updated Cloud Runner and Cloud Monster models while scaling its robot-made LightSpray sneaker.
The company continues its search for a new CFO following co-CEO Marc Maurer's departure earlier this year, leaving Hoffmann as sole CEO.