On Holding reported record third quarter net sales of CHF 931.4 million, representing 17.2% year-over-year growth (17.8% constant currency), which fell slightly short of analyst expectations. However, the company delivered the highest gross profit margin in its history at 72.6%, significantly exceeding its previous guidance. Performance was driven by a continued shift toward Direct-to-Consumer channels and strong demand for the apparel category, even as the company maintained strict full-price discipline in a promotional market.
Key Highlights
- Gross profit margin expanded to 72.6%, or 66.9% excluding CHF 52.6 million in one-time U.S. tariff refunds, reflecting an underlying improvement of approximately 320 basis points.
- Direct-to-Consumer (DTC) sales grew 25.0% to CHF 393.3 million, increasing the DTC share of total net sales to 42.2%.
- Apparel sales outperformed footwear growth, surging 38.7% year-over-year, bolstered by high-visibility marketing collaborations and collections.
- Net income reached CHF 162.8 million with a margin of 17.5%, while adjusted EBITDA margin grew to 27.6% (21.9% excluding tariff refunds).