On Holding AG Achieves Strong Growth in Recent Quarter

Author: Evelyn Baker Updated: 08-13-2025 12:27 PM

On Holding AG Reports Impressive Second Quarter Results

Shares of On Holding AG ONON experienced a slight decline in early trading, even after the company's announcement of an impressive second-quarter performance.

Key Highlights from Analyst Insights

Market experts shared several noteworthy observations regarding the company’s performance.

Analyst Ratings

Needham analyst Tom Nikic maintained a Buy recommendation for On Holding, setting a price target of $62.
Telsey Advisory Group's Cristina Fernández confirmed an Outperform rating, with a price target of $65.

Significant Growth in Direct-to-Consumer Channels

According to Nikic, On Holding showcased a "rock-solid beat-and-raise" quarter, with direct-to-consumer (DTC) sales surging by 54% in the most recent quarter, up from 42% in the previous quarter. This growth marked the highest recorded since the third quarter of last year.

Driving Factors Behind DTC Growth

The robust growth in DTC sales can be attributed to increased activity across e-commerce and retail channels, while wholesale revenues climbed by 29%, surpassing market expectations of 26%. However, while On Holding increased its full-year guidance, analysts projected slight deceleration in growth during the latter half of the year due to challenging year-over-year comparisons and broader economic uncertainties.

Regional Performance Overview

Fernández highlighted that while the DTC channel experienced accelerated growth, apparel sales showed signs of deceleration. Notable performance variations were observed across regions, with growth in the EMEA (Europe, Middle East, and Africa) region accelerating, while growth in the APAC (Asia-Pacific) region remained impressive despite a notable slow-down.

Future Outlook and Price Strategy

On Holding raised its forecasts for full-year revenues, gross margins, and EBITDA, demonstrating its strong global brand presence and bolstered confidence for the remainder of the year, according to analyst insights. Although increasing tariff costs pose challenges, the company is enhancing profitability by implementing strategic price increases across select products.

Current Stock Performance

At the time of reporting, On Holding's stock price had dropped by 4.50%, trading at $47.57.

Frequently Asked Questions

What are the recent earnings results for On Holding AG?

On Holding AG experienced significant growth in its second-quarter earnings, marked by a 54% increase in DTC sales compared to the previous quarter.

What did analysts say about On Holding’s stock performance?

Analysts have given On Holding a strong outlook, with both Needham and Telsey Advisory Group reaffirming their positive ratings and setting substantial price targets.

How did regional performance vary for On Holding?

While the company saw growth in the EMEA region, the APAC market experienced a slowdown. Overall, the DTC channel continued to show strong momentum.

What strategies is On Holding employing to manage tariff costs?

The company is offsetting rising tariff costs by strategically increasing prices on select items to maintain profitability.

What is the current stock price of On Holding?

As per the latest update, On Holding's stock is trading at approximately $47.57, reflecting a recent decline in value.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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