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ONON Stock Forecast 2025: On Holding (ONON) stock surged early Wednesday after the company delivered better-than-expected third-quarter results.
The strong earnings prompted the firm to lift its full-year outlook, reflecting growing confidence ahead of the busy holiday season.
“We had an incredible quarter that exceeded all expectations,” CEO Martin Hoffmann told Yahoo Finance.
“That success gives us real confidence as we move into Q4. The first days of November already show strong momentum, and we’re excited about what’s ahead.”
On is projecting at least a 34% increase in net sales for fiscal year 2025, up from its earlier estimate of 31%.
During its 2023 Investor Day, the company had predicted sales would exceed $4.44 billion by 2026, representing about 26% yearly growth. Hoffmann said On is already performing well ahead of that target.
In the third quarter, On reported earnings of 0.43 Swiss francs per share, or about $0.54 — well above the CHF 0.27, or $0.34, that analysts had expected, according to Bloomberg.
Revenue climbed to CHF 794.4 million, or roughly $993 million, beating forecasts of CHF 767.5 million, or around $960 million.
The company also noted that its profit margins are on track to surpass earlier estimates.
In the third quarter, the Asia-Pacific region led On’s revenue growth, with sales more than doubling after accounting for currency shifts.
Hoffmann said the growth was fueled by a younger customer base that values On’s premium look and distinctive appeal, setting it apart from mainstream brands.
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Hoffmann said U.S. consumers are embracing On’s newer lines, such as tennis and training shoes. He explained that the brand is connecting with a broader audience, especially younger buyers, thanks to ambassadors like Zendaya.
The goal, he added, is to position On as the most premium choice in the market.
Sales in the Americas rose 21% during the quarter.
Before the earnings release, On Holding shares had dropped about 35%, reflecting the broader slump in the footwear industry. Rivals Nike and Deckers Outdoor also struggled, with their stocks down 16% and 59%, respectively, this year.
Citi analyst Paul Lejuez noted before the earnings release that On’s stock slide may partly stem from investor worries about a possible Nike comeback and how it could affect On’s long-term growth path.
He believes Nike’s turnaround could take 12 to 18 months to show real signs of improvement. Hoffmann, however, said he isn’t too concerned about the competitive landscape.
“We’re creating our own path with the goal of becoming the most premium sportswear brand in the world,” Hoffmann said.
Ahead of the results, Telsey Advisory Group analyst Cristina Fernández told clients that On continues to show strong brand momentum, with solid store traffic and limited discounting across the market.
Hoffmann added that the company’s full-price sales share has increased from last year and will remain a key focus going forward.
“We’re one of the rare brands that sell only at full price, and the growth we’ve experienced has been truly remarkable,” Hoffmann said.
He added that constant innovation keeps customers loyal. Products like the Cloudsurfer and Cloudsurfer Max continue to attract buyers who are happy to pay more — even after the company raised prices in July because of tariffs.
Next year, On plans to launch several new sneakers, including updated versions of the Cloud Runner and Cloud Monster. The company also intends to introduce its robotically crafted LightSpray shoes to the broader market.
At the same time, On is looking for a new chief financial officer. Hoffmann took on the role of sole CEO earlier this year after the departure of co-CEO Marc Maurer.
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