ONON Lifts Full-Year Outlook After Record Profit Margins and Apparel Growth Accelerate in Q3
Apparel Sales Double and Gross Margins Reach New Highs—Key Highlights Stand Out
On Holding AG (NYSE: ONON) delivered its most profitable quarter yet, reporting record-breaking results for Q3 2025. Fueled by soaring apparel sales and exceptional demand across both direct-to-consumer (DTC) and wholesale channels, the company set new benchmarks in profitability and global expansion. The star of the show? Apparel sales, which jumped 86.9%, reflecting the brand's strengthening reach in both sportswear and fashion.
Profitability Leaps: Gross Margins and Adjusted EBITDA Outperform Expectations
Operational execution and brand positioning paid off. Gross profit margin soared to 65.7%—up more than five percentage points year-over-year—buoyed by both structural efficiencies and one-off cost savings in freight. The company also reported a sharp rise in adjusted EBITDA margin to 22.6% (from 18.9% last year), and a 49.8% jump in absolute adjusted EBITDA. This profitability expansion stands out in an industry often challenged by inflation and logistics pressures.
| Key Metric (Q3 2025) | 2025 | 2024 | % Change |
|---|---|---|---|
| Net Sales (CHF, mn) | 794.4 | 635.8 | +24.9% |
| Gross Profit Margin | 65.7% | 60.6% | +5.1 pts |
| Adjusted EBITDA Margin | 22.6% | 18.9% | +3.7 pts |
| Net Income Margin | 15.0% | 4.8% | +10.2 pts |
| Apparel Sales (CHF, mn) | 50.1 | 26.8 | +86.9% |
Asia-Pacific Growth Remains Unmatched, Driving Regional Strength
The Asia-Pacific region proved to be a growth engine, notching a staggering 94.2% increase in reported sales and 109.2% in constant currency. Europe, Middle East, and Africa (EMEA) sales also surged by 28.6%, while Americas growth remained solid at 10.3%—all in all demonstrating the brand's scalable model across geographies.
| Region | Q3 2025 Sales (CHF, mn) | Q3 2024 Sales (CHF, mn) | % Change |
|---|---|---|---|
| Asia-Pacific | 144.9 | 74.6 | +94.2% |
| EMEA | 213.3 | 165.8 | +28.6% |
| Americas | 436.2 | 395.5 | +10.3% |
Sales Channels: DTC and Wholesale Both Show Robust Expansion
On's business model continues to prove its adaptability. DTC channel net sales rose 27.6%, outpacing wholesale at 23.3%. The company’s investments in digital and retail (including new flagship stores in Palo Alto, Zurich, and Tokyo) have deepened its brand presence and driven balanced channel growth.
| Channel | Q3 2025 (CHF, mn) | Q3 2024 (CHF, mn) | % Change |
|---|---|---|---|
| Direct-to-Consumer | 314.7 | 246.7 | +27.6% |
| Wholesale | 479.6 | 389.1 | +23.3% |
Strong Guidance Signals Confidence for Full Year 2025
Buoyed by operational strength and sustained consumer demand, On has raised its full-year 2025 guidance. Net sales are expected to grow 34% year-over-year in constant currency (to approximately CHF 2.98 billion), gross profit margin outlook has increased to 62.5%, and adjusted EBITDA margin is set to exceed 18%. These metrics are well ahead of prior guidance, pointing to momentum both for the crucial holiday season and longer-term growth.
Takeaway: Apparel Momentum, Operational Efficiency, and Regional Gains Are Reshaping ONON’s Trajectory
While shoes remain the largest business, On’s focus on apparel is quickly transforming its product mix, with recent results demonstrating broad consumer appetite. Margin improvement suggests pricing power and supply chain gains are sticking. As the company strengthens its presence in key international markets, especially Asia-Pacific, and with continued expansion in both DTC and wholesale, ONON’s path for the remainder of the year and beyond looks notably brighter.
Investors may want to tune into the scheduled conference call on November 12, 2025, for more insights into how the brand plans to maintain this remarkable growth pace—and whether it can continue outpacing its own ambitious guidance.
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