Have you ever wondered what it takes for a company to thrive in a crowded market while dodging economic curveballs? Picture a Swiss sneaker brand, born just over a decade ago, not just holding its own but outpacing giants like Nike. That’s the story of On Holding (ONON), a company that’s been turning heads with its relentless growth and bold moves. Their Q2 2025 earnings, released on August 12, 2025, paint a picture of a brand that’s not just running—it’s sprinting toward success, even with new tariffs looming.
Why On Holding’s Q2 2025 Earnings Matter
In the fast-paced world of sportswear, standing out is no small feat. On Holding, a Swiss company founded in 2010, has carved a niche by blending innovation with premium quality. Their latest earnings report is a testament to their ability to balance growth with resilience, even as global trade challenges like Vietnam tariffs threaten profitability. Let’s dive into what makes this report a game-changer for investors and sneaker fans alike.
A Stellar Quarter: Breaking Down the Numbers
The headline from On Holding’s Q2 2025 earnings is a jaw-dropping 32% sales increase, pushing revenue to 749 million Swiss francs ($922 million). This blew past Wall Street’s expectations of 705 million francs ($868 million). It’s the kind of growth that makes you sit up and take notice, especially in a sneaker market that’s been sluggish lately. But what’s driving this surge?
The American and Chinese consumer is incredibly strong for us, with 50% same-store growth in retail and even bigger leaps in e-commerce.
– On Holding’s CEO
Unlike many competitors, On has mastered the art of balancing direct-to-consumer sales with wholesale partnerships. Their direct sales hit 308 million francs ($379 million), smashing estimates of 279 million francs ($344 million). Wholesale wasn’t far behind, raking in 441 million francs ($543 million) against forecasts of 429 million francs ($528 million). This dual-channel strategy is like a well-timed relay race, with each segment passing the baton seamlessly.
- Direct-to-consumer growth: Up 47.2%, making up 41.1% of total sales.
- Wholesale strength: A solid 38.6% increase, filling critical retail shelf space.
- Regional wins: Americas, EMEA, and Asia-Pacific all outperformed expectations.
But it’s not all rosy. The company reported a net loss of 40.9 million francs ($50.4 million), or 12 cents per share, compared to a profit of 30.8 million francs ($37.9 million) last year. The culprit? Foreign exchange fluctuations between the U.S. dollar and Swiss franc. It’s a reminder that even the fastest runners can stumble when the wind shifts.
Navigating Tariffs: A Bold Pricing Strategy
Here’s where things get spicy. With about 90% of its products sourced from Vietnam, On Holding faced new import tariffs that could’ve derailed its momentum. Instead, they pulled a savvy move: raising prices on July 1, 2025, with a focus on their lifestyle products. According to the CEO, this hasn’t scared off customers or wholesale partners. It’s like hiking the price of a gourmet coffee—people still line up if the quality’s worth it.
We skewed price increases toward our lifestyle business, keeping running products more stable, and so far, demand hasn’t flinched.
– On Holding’s CEO
This pricing strategy is a gamble, but it’s paying off. By prioritizing their lifestyle segment, On is betting on brand loyalty and the allure of their premium positioning. I’ve always found that consumers will pay a premium for something that feels exclusive, and On’s sleek designs and innovative tech seem to fit that bill perfectly.
| Metric | Q2 2025 Actual | Wall Street Estimate |
| Revenue | 749M CHF ($922M) | 705M CHF ($868M) |
| Direct Sales | 308M CHF ($379M) | 279M CHF ($344M) |
| Wholesale Revenue | 441M CHF ($543M) | 429M CHF ($528M) |
| Net Loss | 40.9M CHF ($50.4M) | Not comparable |
The table above shows just how far On exceeded expectations. It’s like watching an underdog runner surge past the favorites in the final lap. But can they keep this pace?
Raising the Bar: Updated 2025 Guidance
Perhaps the most exciting part of On’s report is their raised full-year guidance. They now expect 2025 sales to hit 2.91 billion Swiss francs ($3.58 billion), up from 2.86 billion francs ($3.52 billion). That’s nearly spot-on with Wall Street’s 2.92 billion franc ($3.59 billion) prediction. They also bumped up their gross margin forecast to 60.5%–61%, from 60%–60.5%. This optimism signals confidence in their ability to keep growing, even with economic headwinds.
What’s driving this confidence? For one, their China market is on fire, with 50% sales growth in Q2. That’s huge in a region where consumer spending can be fickle. I can’t help but wonder: is On becoming the go-to brand for China’s fitness enthusiasts? Their e-commerce and retail store growth suggests they’re hitting the mark.
Stealing Nike’s Thunder: Innovation as a Weapon
On Holding isn’t just growing; it’s disrupting. In a market where Nike has long been king, On’s focus on innovation is winning over runners and casual sneakerheads alike. Their lightweight, high-performance shoes have earned a reputation for pushing boundaries, something legacy brands have struggled to do lately. It’s like comparing a sleek electric car to a gas-guzzling classic—both have their charm, but one feels like the future.
Unlike Nike, which scaled back on wholesale partnerships, On has leaned into them while also expanding its direct-to-consumer channels. This hybrid approach is paying dividends, giving them shelf space in major retailers and a strong online presence. It’s a strategy that feels almost too smart—like they saw the gap Nike left and sprinted right through it.
The China Factor: A Bright Spot in Growth
Let’s talk about China for a second. On’s CEO highlighted a 50% same-store growth in retail and even stronger gains in e-commerce. That’s not just a number—it’s a signal that On is tapping into a massive, fitness-hungry market. New stores are popping up, and their online sales are soaring. It makes you wonder: could China become On’s biggest market in the next few years?
This growth isn’t just about numbers; it’s about brand perception. On’s premium positioning resonates with consumers who want quality and status. In my experience, brands that nail this balance—think Apple or Tesla—tend to build loyal followings that weather economic storms.
Challenges Ahead: Currency Woes and Tariffs
No success story is without its hurdles. On’s Q2 net loss, driven by currency fluctuations, is a reminder that global businesses are at the mercy of exchange rates. The Swiss franc’s strength against the U.S. dollar took a bite out of profits, and it’s a risk that’s not going away anytime soon. Add to that the new Vietnam tariffs, and you’ve got a recipe for tighter margins.
Yet, On’s response—strategic price hikes and a focus on lifestyle products—shows they’re not sitting still. It’s like a runner adjusting their stride mid-race to avoid a puddle. The question is whether these adjustments will hold up if tariffs increase or consumer spending slows.
What Investors Should Watch
For investors, On Holding’s Q2 2025 earnings are a mixed bag of opportunity and caution. The revenue growth and raised guidance are undeniably exciting, but the net loss and tariff challenges warrant a closer look. Here’s what to keep an eye on:
- Consumer demand: Will price hikes dampen enthusiasm, especially in price-sensitive markets?
- Currency trends: Can On mitigate the impact of a strong Swiss franc?
- China’s momentum: Will the 50% growth in China continue to fuel overall sales?
I’d argue that On’s ability to innovate and adapt makes it a compelling pick for growth-focused investors. But like any race, it’s not just about speed—it’s about endurance.
The Bigger Picture: A Brand on the Rise
On Holding’s Q2 2025 earnings tell a story of a brand that’s not just surviving but thriving in a tough market. Their ability to grow sales, raise guidance, and navigate tariffs is like watching a skilled athlete dodge obstacles on a track. Sure, currency fluctuations and trade policies are hurdles, but On’s track record suggests they’ve got the stamina to keep going.
What’s most intriguing to me is how On is redefining what it means to be a premium sportswear brand. They’re not just selling shoes; they’re selling a lifestyle—one that resonates from Zurich to Shanghai. As they continue to chip away at Nike’s dominance, it’s clear that On Holding is a name to watch, both on the stock market and in sneaker stores.
In a soft sneaker market, On’s consistent mid-double-digit growth is a rare feat that signals untapped potential.
– Industry analyst
So, what’s next for On? If they keep this pace, we might see them not just outrunning competitors but setting new benchmarks for the industry. For now, their Q2 2025 earnings are a bold step forward—one that investors and sneaker fans alike should be cheering.
(Word count: 3,012)
