On Holding Continues to Post Strong Results Despite CEO Shifts

Why It Matters

The strong top‑line and margin expansion proves On’s premium, multi‑category model can thrive amid leadership change, reinforcing its competitive edge in the fast‑growing athletic‑apparel market.

Key Takeaways

• Net income rose 82% to CHF 103.3 m (~$112 m).
• Apparel revenue jumped 45%, becoming a key growth driver.
• DTC sales up 164% to CHF 322.3 m (~$351 m).
• Asia‑Pacific sales grew 44%, now over 20% of total volume.
• Co‑founders Coppetti and Allemann named co‑CEOs, pledging strategy continuity.

Pulse Analysis

On Holding’s Q1 performance underscores the potency of its premium positioning in the crowded sportswear sector. By leveraging high‑margin footwear and a rapidly expanding apparel line, the Swiss‑based brand delivered an 82% surge in net income and broke the CHF 800 million quarterly sales barrier. The 45% jump in apparel sales highlights a strategic shift toward lifestyle offerings, while the 164% rise in direct‑to‑consumer revenue reflects a broader industry trend of brands cutting out intermediaries to capture higher margins and richer customer data.

The leadership transition to co‑founders Caspar Coppetti and David Allemann arrives at a pivotal moment, yet the executives stress continuity in strategy. Analysts have noted that the dual‑CEO model can preserve the entrepreneurial culture that fueled On’s rapid scale‑up, while the appointment of CFO Frank Sluis signals financial stewardship amid expanding global operations. The company’s DTC acceleration, combined with steady wholesale growth, positions it to deepen market penetration in key regions, especially as Asia‑Pacific sales now account for more than one‑fifth of total volume.

Looking ahead, On’s reaffirmed guidance—targeting at least 23% net‑sales growth and gross‑profit margins above 64.5%—suggests confidence in sustaining momentum despite tariff headwinds. New store openings in Stockholm, São Paulo, Sydney and San Francisco will broaden its physical footprint, complementing a robust e‑commerce platform. For investors, the blend of strong profitability metrics, a diversified product mix, and a clear expansion roadmap makes On a compelling play in the high‑growth athletic‑apparel market.