On Holding AG announced its first-quarter 2025 results, with net sales increasing by 43% to CHF 726.6 million, surpassing analyst estimates of CHF 681.2 million. The direct-to-consumer (DTC) channel's share surged to 38.1% of total net sales, contributing to the strong top-line performance.
The company's gross profit margin improved to 59.9% from 59.7% in the prior year, and the adjusted EBITDA margin increased to 16.5%. However, net income for the quarter fell to CHF 56.7 million from CHF 91.4 million a year ago, and adjusted profit per share was CHF 0.21, slightly below the CHF 0.22 expected by analysts.
On Holding AG raised its full-year 2025 net sales growth forecast to at least 28% on a constant currency basis, an increase from its previous expectation of 27%. This revised outlook reflects continued strong demand, with April 2025 being the strongest month in the company's history.
To mitigate the impact of import duties, CEO Martin Hoffmann stated that the company plans to selectively adjust prices in the U.S. market starting in July. The annual adjusted core profit margin growth forecast was slightly lowered to a range of 16.5% to 17.5% from previous expectations of 17% to 17.5%.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.