Swiss Sneaker Maker On Uplifts 2025 Guidance Again, Sticks to Full-Price Holiday Strategy

Swiss-based On (SWX: ONON) keeps defying the broader sneaker market malaise with yet another raised sales forecast for the fiscal year 2025. The sportswear company delivered earnings and revenue numbers that surpassed analyst estimates, marking a rare bright spot as competitors brace for tougher times.

In its fiscal third quarter ended September 30, On posted revenue of 794 million Swiss francs, beating the Wall Street consensus of 763 million. Earnings per share, adjusted, came in at 43 cents, well above the 25-cent forecast. This translated to net income jumping to nearly 119 million francs, a sharp uptick from the 30.5 million francs recorded a year earlier.

On now projects full-year sales of 2.98 billion francs ($3.72 billion), a slight increase over its prior estimate of 2.91 billion and edging out the 2.97 billion consensus. On a constant currency basis, management expects a 34% jump in sales compared to last year, up from the earlier forecast of 31% growth.

This streak of upgrading guidance, three times in a row, highlights On's unexpected momentum amid a sneaker market facing headwinds. Many large players, including Nike (NYSE: NKE) and Deckers brands like Hoka, have scaled back sales expectations amid slowing consumer spending and tariff challenges.

On's CEO Martin Hoffmann stresses their focus on maintaining premium pricing and innovation rather than chasing growth through discounts or promotions. He points to the synergy of performance and design that appeals strongly to customers, which is reflected in growing sales and healthier margins.

Interestingly, On is taking an uncommon approach for the upcoming holiday season by refusing to dip into Black Friday promotions. Co-founder Caspar Coppetti described the choice as sticking to full-price sales during a discount-heavy period, signaling their intent to cement their position as the most premium sportswear brand.

Rather than follow the bargain bin path, On is rolling out innovations such as its "LightSpray" technology-a novel method to produce running shoes quickly using spray guns. This technology gained attention recently when marathon champion Hellen Obiri wore On's Cloudboom Strike LS shoes while smashing the women's record at the New York City Marathon by nearly three minutes.

The company's strategy seems to be a bet on loyalty and product differentiation, carving out a niche distinct from mass-market brands. By investing in design and functionality that resonate on race tracks as well as retail shelves, On aims to grow without eroding brand value via discounts.

Whether this approach will continue to pay off remains to be seen, but On's steady guidance upgrades and solid earnings performance put it in the spotlight among sportswear stocks amid cautious industry forecasts.