On Holding (ONON) Q2 2025 Earnings Call Transcript

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Aug. 12, 2025 astatine 8 a.m. ET

• Co-Founder — David Allemann

• Chief Executive Officer — Martin Hoffmann

• Co-Founder — Caspar Coppetti

David Allemann: A precise lukewarm invited to our 2nd 4th 2025 results call. We anticipation you are having an enjoyable summer. This past quarter, our communicative of maturation continued with unthinkable momentum. Our results amusement that what we are gathering is robust and genuinely transformative. We grew nett income by 38% connected a changeless currency ground to a grounds of CHF 749.2 million, beating our expectations. But this wasn't conscionable astir growth. It was astir our premium positioning, which drove further enlargement successful our gross nett borderline to 61.5% and our adjusted EBITDA borderline to 18.2%. What I'm astir arrogant of is that this momentum was broad-based. We saw spot crossed each region, transmission and merchandise category.

This broad-based resilience is the precise explanation of the jock tone successful our business, mounting the signifier for semipermanent growth. The beardown numbers we conscionable reported are a nonstop reflection of thing deeper. Today, I privation to speech astir 1 of the halfway values astatine On, the jock spirit. The tone is each astir resilience and balance. It's astir waking up acceptable to bid careless of whether we won oregon mislaid yesterday. It's astir playing the agelong game, not chasing a accelerated win. We're gathering resilience everywhere, successful our merchandise portfolio and our transmission mix, successful the spot of our planetary footprint and instrumentality basal and successful our founder-led leadership. It's gathering our aboriginal for years to come.

For me, everything starts with the product. What genuinely excites maine is that we're not conscionable creating footwear, we're gathering iconic franchises. Today, we person 9 chiseled footwear franchises, each contributing much than 5% to our apical line. That benignant of equilibrium isn't an accident. It's the effect of a years' agelong focused strategy to physique resilience into our portfolio. We're gathering iconic franchises similar the Cloudsurfer and Cloudmonster, and we're besides seeing caller momentum with the recently launched Cloud 6. These are merchandise brands successful their ain right. But our imaginativeness goes acold beyond footwear. Our apparel concern is expanding precise accelerated and with it, our relevance arsenic a afloat sportswear brand.

We precocious previewed our Spring/Summer '26 postulation during Paris Fashion Week and launched caller apparel with Zendaya, which volition further elevate awareness. What connects footwear and apparel is On's strive successful technological innovation and our routes successful Swiss engineering and design. This allows america to amusement up to have, connected with a broader assemblage and physique a genuinely resilient portfolio. But our merchandise resilience is astir much than conscionable footwear and apparel, it's our committedness to triumph successful aggregate sports. We started successful running, but we successfully expanded to trail, outdoor tennis and training, moving america person to our imaginativeness of being the astir premium holistic sportswear brand.