On slips into the red in second quarter despite sales increase

Swiss sportswear supplier On Holding AG set another sales record in the second quarter of the 2025 financial year. Negative currency effects resulted in a substantial loss. Despite this, the trainer specialist raised its annual forecasts on Tuesday due to the unexpectedly strong growth in its operating business.

Asiapacific sales more than double

In the period from April to June, sales amounted to 1.48 billion Swiss francs. This represents a 32 percent increase compared to the same quarter of the previous year, exceeding market expectations. Adjusted for exchange rate changes, revenue grew by 38.2 percent.

The company's own retail sector was the growth driver, with an increase of 47.2 percent (currency-adjusted 54.3 percent) to 308.3 million Swiss francs. Wholesale business revenue increased by 23.1 percent (currency-adjusted 28.8 percent) to 441 million Swiss francs.

Revenue in the Asia-Pacific region once again saw the most dynamic development. At 119.2 million Swiss francs, sales were more than double the previous year's quarter (101.3 percent, currency-adjusted 110.9 percent).

In America, sales grew by 16.8 percent (currency-adjusted 23.6 percent) to 432.3 million Swiss francs. In the EMEA region, which includes Europe, the Middle East and Africa, revenue reached 197.8 million Swiss francs. This represents a 42.9 percent increase (currency-adjusted 46.1 percent) compared to the same period last year.

Adjusted EBITDA increases by 50 percent

Thanks to the higher revenue share from the company's own retail sector and further efficiency improvements, the gross margin increased from 59.9 to 61.5 percent. Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special effects, therefore increased by 50.0 percent to 136.1 million Swiss francs.

Due to negative currency effects, however, the company reported a net loss of 40.9 million Swiss francs. In the same quarter of the previous year, On had achieved a profit of 30.8 million Swiss francs.

In the first six months, sales reached just under 1.48 billion Swiss francs, an increase of 37.2 percent (currency-adjusted +39.1 percent). Net profit shrank by 87.1 percent to 15.8 million Swiss francs.

Management raises annual forecasts

In light of the strong sales growth and the increase in operating profitability, management raised its forecasts for the year. For 2025, it now expects currency-adjusted sales growth of at least 31 percent to at least 2.91 billion Swiss francs. Previously, currency-adjusted growth of at least 28 percent to over 2.86 billion Swiss francs had been forecast.

The gross margin is now expected to reach 60.5 to 61.0 percent in the current year, up from the previous expectation of 60.0 to 60.5 percent. The target for the EBITDA margin, which had previously been 16.5 to 17.5 percent, was specified to 17.0 to 17.5 percent.

This article was translated to English using an AI tool.

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