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Dive Brief:
Starting the new fiscal year strong, On’s first-quarter net sales rose 43% year over year to 726.6 million Swiss francs (about $863 million at press time), according to a company press release Tuesday. The brand’s net income decreased by 38% to 56.7 million Swiss francs while its gross profit increased by 43.5% to 435.3 million Swiss francs.
The company’s direct-to-consumer net sales grew 45.3% and accounted for 38.1% of On’s total net sales in Q1. Meanwhile, its wholesale channel net sales increased 41.5% year over year.
On also altered its full-year 2025 guidance due to factors such as currency fluctuations and trade policy shifts, raising its expected net sales to reach at least 28% growth on a constant currency basis compared to the 27% it previously projected. It lowered its gross profit margin projection slightly from around 60.5% for the full year to now be in the range of 60% to 60.5%.
Dive Insight:
While the athletics brand faces global headwinds, On still beat expectations for the quarter as it hits the drum on its higher-end positioning.
“Looking into the second quarter and beyond, we are energized by the global traction and cultural resonance of On as a head-to-toe sportswear brand,” On co-founder and Executive co-Chairman Caspar Coppetti said in a statement. “As we solidify our premium positioning in the marketplace, we will continue to focus on what differentiates us — combining performance and design with a constant thirst for innovations big and small.”
That premium positioning is key for the brand as it also looks at shifting tariff policies in the U.S. The brand’s updated full year outlook “includes the additional United States tariffs in place during the current 90-day pause on the country-specific reciprocal tariffs,” per the release.
On an earnings call Tuesday, co-CEO and CFO Martin Hoffmann noted that the company is always assessing its global pricing strategy to maintain its premium positioning.
When asked about exact pricing strategy and tariff mitigation efforts, Coppetti said the brand’s focus on premium branding over the years has helped the company earn its “pricing power” in various markets.
“We want to separate ourselves even more from our competitors, so we are in the position to increase prices and we will do this,” Coppetti said on the call. “In the normal course of business, starting with the fall-winter season in July, we will initiate a pricing round in the U.S. on selective styles.”
Within its product lineup, On reported a 99.2% increase in net sales for the quarter in its accessories category, reaching 7.6 million Swiss francs. Meanwhile, net sales for shoes jumped 40.5% to 680.9 million Swiss francs while apparel net sales grew 93.1% to 38.1 million Swiss francs.
The latest results follow news in April that On’s co-CEO Marc Maurer will exit the role on June 30 after 12 years in the position, transitioning to an adviser role through March 2026. Hoffmann will become the brand’s sole CEO in July, and the company will search for a new CFO.
Additionally, On announced at the time that Craig Jones joined the company as its chief supply chain officer, Scott Maguire became On’s chief innovation officer, Adib Sisani became its chief communications officer and Katarina Berg will join the brand as chief people officer on Aug. 1.
