As of 12:52 PM EDT on August 13, 2025, On Holding AG (NYSE: ONON) traded at $48.43, down 2.77%, after releasing Q2 results that showcased robust top-line growth, improved margins, and an upgraded outlook, despite foreign exchange-driven losses.
For the quarter ended June 30, 2025, net sales reached CHF 749.2 million, up 38% year-over-year at constant currency, and 32% on a reported basis. Gross profit margin improved by 160 basis points to 61.5%, while adjusted EBITDA margin expanded 220 basis points to 18.2%.
Direct-to-consumer (DTC) sales surged 54.3% year-over-year at constant currency to CHF 308.3 million, making up 41.1% of total sales. Wholesale revenue climbed 28.8% at constant currency to CHF 441 million.
👟On Running Q2 Earnings One Pager!$ONON +13% First Reaction 🟢
🚨HUGE Top-line beat, but Massive 140M FX Loss
Revenue CHF 749.2M +32% 🟢 HUGE BEAT (Est 704M)
Net Income – CHF 41M -233% 🥶
FCF CHF 85M -2% 🟢 HUGE BEAT (Est 2M)Shoes Revenue +30% 🟢
Apparel Revenue +67.5% 🟢… pic.twitter.com/1rmn5CGMyb— Ray Myers (@TheRayMyers) August 12, 2025
By region, EMEA sales advanced 46.1% year-over-year at constant currency, Americas gained 23.6%, and APAC posted triple-digit growth of 110.9%.
From a product perspective, shoes brought in CHF 704.9 million in sales, up 36% at constant currency, while the apparel segment posted an impressive 75.5% growth, reaching CHF 36.7 million.
Despite operational gains, On Holding reported a net loss of CHF 40.9 million, compared to a profit of CHF 30.8 million in the prior year. The loss was driven by unrealized foreign exchange impacts tied to US dollar-denominated assets.
Adjusted net loss was CHF 29.7 million, or CHF 0.09 per Class A share, versus an adjusted profit of CHF 46.9 million a year earlier. Operating profit more than doubled to CHF 92.8 million from CHF 47.3 million.
The company faced new tariff rates, 40% on Vietnamese imports and 39% on Indonesian imports, which could pressure costs. Management also flagged the weaker US dollar against the Swiss franc as an ongoing headwind.
Following strong first-half momentum, On Holding raised its full-year 2025 guidance. Net sales are now expected to be at least CHF 2.91 billion, up from CHF 2.86 billion, representing at least 31% growth at constant currency. Adjusted EBITDA margin is forecast between 17.0% and 17.5%, compared to the previous 16.5–17.5% range.
The company ended the quarter with CHF 846.6 million in cash and an inventory balance of CHF 360.4 million. Its retail footprint expanded to 54 company-operated stores worldwide.
The post On Holding AG ($ONON) Stock: Q2 2025 Sales Surge 38% Despite Currency Headwinds and Net Loss appeared first on CoinCentral.
