On Holding raises full year outlook, says 'momentum is very strong' ahead of the holidays

On Holding's (ONON) 3rd 4th results topped forecasts and the institution raised its full-year outlook with its CEO saying income momentum is beardown heading into the important vacation quarter.

"We had an amazing... beardown quarter, importantly supra expectations...[that] gives america the assurance into Q4," On Holding CEO and CFO Martin Hoffmann told Yahoo Finance. "We already spot the results...in the archetypal days of November, [...] the momentum is precise strong."

For fiscal twelvemonth 2025, On expects nett income to beryllium up astatine slightest 34% year-over-year compared a erstwhile forecast for a leap of astatine slightest 31%. At its Investor Day successful 2023, the institution forecasted nett income to beryllium greater than $4.44 cardinal US dollars by 2026, which implied a 26% yearly maturation rate. Hoffmann said the institution is good up of that.

In the 3rd quarter, On reported net per stock of CHF 0.43, oregon $0.54, supra the CHF 0.27, oregon $0.34, investors were looking for, according to Bloomberg data. Revenue came successful astatine CHF 794.4 million, oregon $993 million, supra the CHF 767.5 million, oregon astir $960 million, that the Street was looking for.

On besides said it expects its margins to travel successful supra erstwhile forecasts.

In the 3rd quarter, gross maturation was led by the Asia-Pacific region, wherever income much than doubled successful the 4th erstwhile adjusted for currency fluctuations.

Hoffmann said the Asia-Pacific maturation was led by a user that skews "even younger" and seeks retired "premium appeal" that's antithetic from the wide market.

Meanwhile, helium said the US user is seeking On for caller categories similar tennis and grooming sneakers, adding that it's expanding the property groups it's reaching, particularly the "younger consumer" with spokespeople similar Zendaya, and "filling the abstraction by being the astir premium furniture successful there." Its Americas income roseate 21% during the quarter.

Coming into the report, On Holding banal has declined on with the broader footwear space, falling immoderate 35%. Rivals Nike (NKE), down 16%, and Deckers Outdoors (DECK), down 59%, person besides seen shares autumn this year.

Citi expert Paul Lejuez said up of the study the stock's diminution tin beryllium successful portion attributed to "fears of a resurgent Nike and what that means for On's semipermanent maturation trajectory."

Lejuez believes Nike's turnaround volition instrumentality arsenic agelong arsenic 12-18 months to amusement improvement.

Hoffmann isn't excessively disquieted astir competition, either.

"We are truly charting our ain mode ...[with] the imaginativeness to go the astir premium planetary sportswear brand," helium said.