“Building on our vision to be the most premium global sportswear brand, our first quarter results have exceeded our expectations and reflect the strong momentum of our brand across all channels, regions and product categories. 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. 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”, commented Caspar Coppetti, Co-Founder and Executive Co-Chairman of On.

First Quarter Results

In the first quarter of 2025, the company’s net sales rose by 43.0% (or 40.0% at constant exchange rates), as compared to the same period of last year, reaching 726.6 million Swiss francs (776.8 million euros).

The DTC channel contributed 276.9 million Swiss francs (296.0 million euros) to total first quarter net sales, an increase of 45.3% (or 42.4% at constant exchange rates), and the wholesale channel contributed 449.7 million Swiss francs (480.8 million euros), an increase of 41.5% (or 38.6% at constant exchange rates) over the same prior year period.

In the first quarter of the current financial year, net sales grew by 33.6% (or 33.0% at constant exchange rates) to 168.6 million Swiss francs (180.3 million euros) in the EMEA region, on a comparable basis to the same period of 2024. In the Americas region, net sales grew by 32.7% (or 28.6% at constant exchange rates) to 437.4 million Swiss francs (467.6 million euros) and by 130.1% (or 128.9% at constant exchange rates) to 120.6 million Swiss francs (128.9 million euros) in the Asia Pacific region.

From a segment perspective, the shoe segment contributed 680.9 million Swiss francs (727.9 million euros) to On’s total first quarter net sales, up by 40.5% (or 37.5% at constant exchange rates) year-on-year. The apparel segment contributed 38.1 million Swiss francs (40.7 million euros), up by 93.1% (or 91.0% at constant exchange rates) year-on-year, and the accessories segment contributed 7.6 million Swiss francs (8.1 million euros), up by 99.2% (or 97.9% at constant exchange rates) year-on-year.

In the three months ending on the 31^st of March, On reported a gross profit margin increase to 59.9% from 59.7% in the same year-ago period and an adjusted EBITDA margin increase from 15.2% to 16.5%. However, its first quarter net income margin decreased to 7.8% from 18.0%.

Outlook

The Swiss-based sportswear company has raised its full year net sales outlook to a 28% growth year-on-year.

However, it also acknowledged that recent changes in global trade policy have introduced a higher level of planning uncertainty, including the potential for increased customs and freight costs, as well as the significant depreciation of all major operating currencies against the Swiss franc.

As a result, the company now expects its full year gross margin to be in the range of 60.0% to 60.5% and its full year adjusted EBITDA margin to be in the range of 16.5% to 17.5%.