Roger models, named after former tennis player and company investor Roger Federer, are displayed in a store of Swiss shoemaker On in Zurich, Switzerland, on August 28, 2025.
Denis Balibouse | Reuters
Swiss sneaker maker On Holding has fallen 11% in pre-market trading, despite issuing guidance for another year of strong growth and reporting record sales and higher profitability in 2025.
The brand, which sells high-priced sports shoes and apparel, posted fourth-quarter net sales of 743.8 million Swiss francs ($946 million), up 30.6% at constant exchange rates and above LSEG estimates of 723.5 million francs.
For the full year, sales exceeded 3 billion francs for the first time, slightly above estimates of 2.99 billion francs.
The fast-growing brand said it expects net sales in 2026 to grow at least 23% in constant currencies. At the current spot price, he said, this implies sales of at least 3.44 billion francs, however the consensus of selling analysts expected this year’s sales to be closer to 3.7 billion francs. The company expects an adjusted EBITDA margin of between 18.5% and 19%.
Shares were flat so far this year as of early trading Tuesday.
On is now in the third and final year of its strategy to double sales to 3.55 billion francs and increase EBITDA margin to at least 18% by 2026, with the goal of being “the most premium global sportswear brand.”
The company, which went public in 2021 on the New York Stock Exchange, has been able to snatch market share from legacy competitors such as Nike and adidas through innovative products and a focus on high-performance footwear and apparel.
“We are witnessing a fundamental social shift, as people around the world replace traditional markers of status with a commitment to health, longevity and performance,” said company co-founder and CEO David Allemann. “On is uniquely positioned to deliver what this discerning consumer demands.”
Profitability also hit new highs throughout the year, the company said.
For the quarter, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 31.8% to 131 million francs, reflecting a margin of 18.8% and surpassing LSEG estimates of 112.4 million francs. The pace reflected operational efficiencies and the strength of the brands’ positioning, the company said.
Asia-Pacific was the standout area, with sales in the region growing 85.1% at constant exchange rates. The Americas and EMEA grew 21.3% and 27.5%, respectively, in the three months ended in December.
“The strength of our premium strategy allows us to exceed our high aspirations while giving us the flexibility to reinvest in high-performing areas that we expect to drive our growth in the coming years,” CEO Martin Hoffmann said in a statement.
In the previously reported quarter, On surprised investors to the upside as it raised its guidance for the third time in a row and beat expectations on both the top and bottom lines, sending the stock up 18%. It also said it would not offer deals during the shopping season because it aims to be a premium brand.
The stock has been largely flat so far this year, with some analysts suggesting challenges will increase in 2026 and the stock’s valuation does not fully reflect these risks.
“In a more difficult pricing environment, and with increasing competitive intensity, premium positioning alone may not be enough to sustain price-driven growth without risking demand and/or increased promotional activity,” Jefferies analyst Randal Konik, who rates the stock Underperform, said in late February.
– CNBC’s Gabrielle Fonrouge contributed to this report.
