(ONON) Earnings for Q3 2025

On Wednesday raised its full-year outlook for the third straight quarter after the Swiss sportswear company posted another three consecutive months of double-digit growth, defying a weak sneaker market.

The company, known for its innovative approach to running shoes, now expects reported sales of CHF2.98 billion ($3.72 billion) in 2025, higher than its previous forecast of CHF2.91 billion. Excluding the effects of currency fluctuations, the company expects sales to increase 34% year-on-year, higher than the previous forecast of 31%.

The forecast was slightly higher than analysts’ expectations of CHF2.97 billion, LSEG said.

“Our focus on premium, full-price sales, innovation and the intersection of performance and design resonates really strongly with consumers and that really sets us apart,” CEO Martin Hoffmann said in an interview with CNBC. “You can see that in our results. We have strong sales growth and strong profit margins, which shows that we are fully committed to full-price sales, and this is across all of our channels.”

In the third quarter of fiscal 2025, the sportswear company beat Wall Street expectations on revenue and bottom line.

Here’s how On has performed compared to Wall Street expectations, based on a survey of analysts by LSEG:

Earnings per share: adjusted 43 cents, expected 25 cents; Revenue: CHF 794 million, expected CHF 763 million.

The company reported net profit of CHF118.9 million (36 cents per share) for the three months ended September 30, compared with CHF30.5 million (9 cents per share) in the same period a year earlier.

Excluding one-time items, On posted earnings of 43 cents per share.

Sales totaled CHF794.4 million, an increase of approximately 25% from CHF636 million in the same period last year.

On’s rosy results meet competitors’ expectations nike Hoka plans for lower sales or slower growth as discretionary spending stagnates and tariffs squeeze shoppers’ wallets. In late September, Nike said it expected sales to fall by low single digits for the current quarter, which typically runs from early September to early December, as the company works to reignite innovation and streamline operations. deckersThe company, which is the parent company of Hoka, the same popular shoe brand as On, lowered its sales forecast for Hoka in October.

On the other hand, On has raised its sales forecast for the year-end sales season. While retail analysts expect most of the industry to rely heavily on discounts and promotions to stimulate demand during the critical holiday season, On will not even offer Black Friday discounts, said co-founder and executive co-chairman Casper Coppetti.

Copetti said in an interview with CNBC that On will be “sold at full price during the holiday season.” “This is against the backdrop of a very competitive and very discount-driven environment right now, so this level-up that we’ve made and being able to command higher selling prices really sets On apart.”

On typically sells alongside brands like Nike, Hoka and Brooks Running, and its holiday strategy is similar to that of luxury brands. This is part of the company’s strategy to become the most premium sportswear brand on the market by not only offering the best value, but also the most innovative products across footwear and apparel.

Still smaller than many of the legacy brands it competes with, On has been slowly chipping away at market share, primarily through innovation, and industry leader Nike has been criticized for falling behind.

Last year, On launched the Cloudboom Strike LS, which is manufactured using its “LightSpray” technology that creates performance running shoes in minutes using a spray gun. Runner Helen Obiri wore the shoes when she broke the women’s record by almost three minutes at the New York City Marathon earlier this month.

“This is very strong validation,” Coppetti said. “Runners are actually paying attention to what people are wearing during races, because these innovations trickle down and influence their choices.”