Market Report: ONON Sees 38% Sales Growth in Q2 2025 Despite Foreign Exchange Headwinds
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Title: On Holding AG ($ONON) Stock: Q2 2025 Sales Surge 38% Despite Currency Headwinds and Net Loss
On Holding AG, a company listed on the New York Stock Exchange (NYSE), has released its quarterly earnings report for the period ended June 30, 2025. The results have shown that the company’s sales have surged by an impressive 38% year-over-year at constant currency. This growth in revenue was achieved despite facing significant challenges related to foreign exchange headwinds and tariffs.
During the quarter, On Holding AG reported net sales of CHF 749.2 million, which represents a substantial increase from the CHF 545.4 million recorded in the same period last year. The company’s revenue performance has been strong across various segments, including direct-to-consumer (DTC) and wholesale.
In particular, DTC sales surged by an astonishing 54.3% at constant currency to CHF 308.3 million. Wholesale revenue also showed significant growth, rising 28.8% at constant currency to CHF 441 million. The company’s apparel segment witnessed a remarkable 75.5% year-over-year increase in sales, reaching CHF 36.7 million.
As for its bottom line, On Holding AG reported a net loss of CHF 40.9 million, compared to the profit of CHF 30.8 million recorded during the same period last year. This loss was primarily driven by unrealized foreign exchange impacts tied to US dollar-denominated assets.
Despite these unfavorable currency effects, the company’s adjusted EBITDA margin improved by 220 basis points to 18.2%. The management has taken a proactive stance in response to ongoing tariff pressures and weaker US dollar against the Swiss franc.
On Holding AG lifted its full-year outlook for fiscal year 2025, citing the strong first-half performance. Management now expects net sales to exceed CHF 2.91 billion, representing at least 31% growth at constant currency compared to FY24. Adjusted EBITDA margin is forecast between 17-17.5%.
The company’s balance sheet remains robust with CHF 846.6 million in cash and an inventory balance of CHF 360.4 million as of June 30, 2025. Additionally, the company has expanded its retail footprint by opening new stores worldwide.
As a result of these operational gains and improved margins, On Holding AG’s board of directors has chosen to maintain its FY25 outlook and adjust it upwards to reflect more optimistic revenue projections.
Source: coincentral.com
