Roger Federer-Backed On Holding Jumps 12% As DTC Sales Soar —Sneaker Price Hikes Coming To Offset Tariffs And Fuel Premium Growth

Swiss athletic footwear company On Holding AG ONON saw its stock jump 12% following stellar first-quarter of 2025 results that handily beat analyst expectations, demonstrating the strength of its premium positioning strategy.

What Happened: The former tennis player Roger Federer-backed company reported first-quarter net sales of CHF726.6 million ($865.48 million), a 43% increase year-over-year.

“Our D2C channel has again fueled our growth, increasing by 45.3% year-over-year on a reported basis and 42.4% on a constant currency basis, reaching net sales of CHF 276.9 million($330.13 million),” said CFO and Co-CEO Martin Hoffmann. “This growth ahead of our expectations has further resulted in an increased D2C share of 38.1% in the first quarter of 2025, up from 37.5% in the first quarter of 2024.”

Executive Co-Chairman Caspar Coppetti highlighted, “The strength of our direct to consumer business and its increased share resulted in an increased gross profit margin of 59.9%.”

Why It Matters: Based on strong results, On raised its 2025 outlook, now expecting constant currency growth of at least 28%, with reported sales projected to reach at least CHF 2.8 billion ($3.34 billion).

The company plans to raise U.S. prices starting in July to reinforce its premium brand positioning and cushion the impact of potential tariffs imposed under President Donald Trump.

Hoffmann concluded, “We are convinced that our partners and fans will continue to invest into the most premium offering in the market, setting us up for long term success from this position of strength.”

Price Action: On Holding AG’s stock closed at $57.38 on Tuesday, rising 11.83% for the day. In after-hours trading, the stock dipped slightly to $57.21, down 0.30%. Year to date, On Holding has gained 3.63%.

Photo Courtesy: Ricardo Trida On Shutterstock.com

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