On Holding AG Reports Record Q1 Results, Raises Full-Year Profitability Outlook
Summary
On Holding AG announced record first-quarter net sales and profitability, driven by strong demand and disciplined execution, leading to a raised full-year profitability outlook.
Key Events
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Record Q1 Financial Performance
Net sales increased by 14.5% year-over-year (26.4% constant currency) to CHF 831.9 million. Net income surged by 82.2% to CHF 103.3 million, with diluted EPS Class A rising to CHF 0.31 from CHF 0.17.
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Significant Profitability Expansion
Gross profit margin reached 64.2%, up 430 basis points, and Adjusted EBITDA margin increased to 21.0% from 16.5% in the prior year, despite higher U.S. tariffs.
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Raised Full-Year Profitability Guidance
The company now expects a full-year gross profit margin of at least 64.5% and an Adjusted EBITDA margin in the range of 19.5% to 20.0%, reflecting continued operational strength.
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Strong Growth Across Channels and Regions
Direct-to-Consumer (DTC) net sales grew 16.4% (28.7% constant currency), and Asia-Pacific (APAC) region sales increased by 44.4% (61.4% constant currency), representing over 20% of global net sales.
Analysis
On Holding AG delivered a strong first quarter, exceeding expectations with record net sales and significant profitability growth. The company's ability to expand gross profit and Adjusted EBITDA margins, despite tariff headwinds, demonstrates strong operational execution. The raised full-year profitability guidance signals management's confidence in continued performance and premium strategy, which is a material positive for investors.
At the time of this filing, ONON was trading at $34.15 on NYSE in the Manufacturing sector, with a market capitalization of approximately $11.3B. The 52-week trading range was $31.41 to $61.29. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.