Apparel and Asia-Pacific Momentum Drive ONON's Record Margins
ONON has delivered its highest-ever gross profit margin and raised its 2025 guidance, propelled by remarkable strength in apparel and extraordinary momentum in Asia-Pacific markets. Net sales for the third quarter jumped 24.9% to CHF 794.4 million, with a 34.5% increase on a constant currency basis. This broad-based expansion—spanning both direct-to-consumer and wholesale channels—underscores the effectiveness of ONON’s global premium strategy and operational discipline.
Gross Profit Margin Sets a New High, Supporting Confident 2025 Guidance
Third-quarter gross profit margin climbed to 65.7%, a jump of 510 basis points year-over-year, thanks to both operational improvements and one-off cost reductions. ONON now expects full-year gross profit margins of about 62.5%, an upgrade from its earlier 60.5–61.0% outlook. Adjusted EBITDA margin in Q3 reached 22.6%, further highlighting expanding profitability as the company continues investing for future growth.
Apparel Growth Nearly Doubles; APAC Delivers Triple-Digit Gains
ONON’s apparel business posted another quarter of eye-catching gains, up 86.9% (or 100.2% on a constant currency basis) to CHF 50.1 million. The Asia-Pacific region was another standout, with reported net sales surging 94.2% and an astonishing 109.2% increase on a constant currency basis—marking a fourth consecutive quarter of triple-digit regional growth.
| Segment | Q3 2025 Sales (CHF million) | Y/Y % Change | Constant Currency % Change |
|---|---|---|---|
| Apparel | 50.1 | 86.9% | 100.2% |
| Asia-Pacific | 144.9 | 94.2% | 109.2% |
| Shoes | 731.3 | 21.1% | 30.4% |
| Accessories | 13.0 | 145.3% | 160.8% |
Direct-to-Consumer and Wholesale Channels Both See Strong Growth
The direct-to-consumer channel advanced by 27.6% (37.5% in constant currency), reflecting ONON’s successful brand-led expansion and digital initiatives. Meanwhile, wholesale revenues climbed 23.3% (32.5% in constant currency), highlighting robust demand across global retail partners.
| Channel | Q3 2025 Sales (CHF million) | Y/Y % Change | Constant Currency % Change |
|---|---|---|---|
| Direct-to-Consumer | 314.7 | 27.6% | 37.5% |
| Wholesale | 479.6 | 23.3% | 32.5% |
Net Income Margin Expands Significantly on Improved Cost Structure
Quarterly net income leapt to CHF 118.9 million—up nearly four-fold from CHF 30.5 million last year. Net income margin expanded from 4.8% to 15.0%, aided by operational efficiency, cost discipline, and one-off positive freight impacts. Adjusted EBITDA increased 49.8% to CHF 179.9 million, representing a 22.6% margin versus 18.9% a year ago.
| Q3 Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Gross Profit Margin | 65.7% | 60.6% |
| Net Income Margin | 15.0% | 4.8% |
| Adjusted EBITDA Margin | 22.6% | 18.9% |
ONON Lifts 2025 Outlook on Strong Performance and Brand Momentum
Following the strong quarter, ONON has upgraded its 2025 guidance: the company now anticipates 34% constant currency net sales growth, implying reported sales of CHF 2.98 billion. Gross margin expectations are raised to around 62.5%, and adjusted EBITDA margin is seen above 18.0%. The premium brand’s strong athlete sponsorships, global collaborations, and recent store openings in Palo Alto, Zurich, and Tokyo add further confidence in sustaining this positive momentum.
Takeaway: Execution and Diversification Stand Out
ONON’s Q3 results showcase exceptional growth across both core and emerging categories, with apparel and Asia-Pacific regions emerging as clear leaders. Expanding profit margins, disciplined execution, and diversified channel strength have enabled the company to confidently raise its outlook for the year. Investors will want to monitor how ONON navigates rising investments and foreign exchange headwinds as it pushes for even broader global relevance and premium brand positioning in 2025.
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