Swiss Sneaker Brand On Lifts Sales Outlook as Customers Snap Up New Cloud 6

On Holding AG nudged its sales growth forecast higher, as demand for the Swiss sneaker maker’s high-priced footwear remained strong despite economic uncertainty.

The Roger Federer-backed company now sees 2025 revenue growing by at least 28 percent to 2.86 billion Swiss francs ($3.4 billion) on a constant currency basis, On said Tuesday. That‘s a percentage point higher than the previous target, but slightly behind the average of analyst estimates.

On has become one of the top performers in the sneaker world, expanding from its core running shoes to areas like tennis, training and apparel. Founded in 2010, the Zurich-based brand is eating into market share of rivals including Nike Inc. and Puma SE.

First-quarter sales rose more than analysts expected to 727 million Swiss francs, up 40 percent from a year ago in constant currency terms.

On’s shares soared as much as 5.9 percent in premarket trading in New York. They are up about 65 percent over the past 12 months through Monday’s close, though uncertainty over trade tariffs on the industry has weighed on the stock in 2025.

The sales growth forecast assumes current levels of US tariffs remain in place. President Donald Trump initially set trade-sapping rates on countries including Vietnam and Indonesia — key production hubs for the sports footwear industry — before significantly reducing them for a 90-day window that expires in July. 

While it‘s unclear how exactly the trade war will play out now, On’s leaders said the company can handle whatever comes.

“Come hell or high water, On is in a good place to weather any storm right now,” co-founder Caspar Coppetti said in an interview. “The brand is extremely strong, the demand is there and the new product innovations are sticking.”

Even so, On added a lower end to its profitability forecast, citing uncertainty around tariffs and knock-on effects including freight rates, supply chain disruption and currency swings. It said its gross profit margin will probably be between 60 percent and 60.5 percent, compared with previous guidance of 60.5 percent.

‘Prudence’ 

“We just embedded a higher level of prudence,” said co-chief executive officer Martin Hoffmann. “It has nothing to do with the fundamentals of the business.”

On has the most expensive running shoes in the industry on average and is already moving to edge prices higher in the US starting in July — and potentially elsewhere heading into next year. That approach hasn’t scared off consumers so far, with no drop in demand for the Cloud 6 model when it hit shelves this year for about $10 more than the previous iteration at about $160, Coppetti said.

The company’s gross profit margin ticked up in the first quarter to 59.9 percent, slightly ahead of estimates. Revenue in the period jumped 33 percent in the Americas, 130 percent in Asia-Pacific and 34 percent in Europe, the Middle East and Africa.

“We’ve had a great start to the year and we see that demand remains strong,” said Hoffmann, adding that April was a record month for sales.

By Tim Loh

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