On Holding Q1 Profit Down, Sales Up; Cuts FY25 Margin View, Lifts Sales Growth View At CC; Stock Up

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(RTTNews) - Sports products maker On Holding AG (ONON) reported Tuesday weak profit in its first quarter, despite significantly higher net sales. Further, the company trimmed its fiscal 2025 outlook for adjusted margin and sales forecast. However, the firm raised sales growth view on a constant curreny basis.

In the pre-market activity on the NYSE, ONON shares were gaining around 3.9 percent to trade at $53.30.

In the first quarter, net income decreased 38.0 percent to 56.7 million Swiss francs from last year's 91.4 million francs.

Earnings per Class A share decreased to 0.17 franc from 0.28 franc a year ago.

Adjusted net income was 70.5 million francs, compared to 106.5 million francs in the prior year. Adjusted earnings per Class A share were 0.21 franc, compared to 0.33 franc a year earlier.

Adjusted EBITDA increased 54.8 percent to 119.9 million francs from 77.4 million francs last year. Adjusted EBITDA margin increased to 16.5 percent from 15.2 percent in 2024.

Net sales increased 43.0 percent to 726.6 million francs from 508.2 million francs last year. Net sales grew 40 percent on a constant currency basis.

Looking ahead, On said it continues to experience strong demand across channels, regions and product categories.

For fiscal 2025, On increased its net sales outlook, now expecting at least 28 percent net sales growth on a constant currency basis, corresponding to reported net sales of at least 2.86 billion francs at current spot rates.

The company previously expected constant currency net sales growth rate of at least 27 percent for the full year, corresponding to reported net sales of at least 2.94 billion francs.

The outlook revision reflects the ongoing brand strength as well as visibility on the order book for the remainder of the year.

The company now expects adjusted EBITDA margin in the range of 16.5 percent - 17.5 percent for the full year, compared to previously expected margin of 17 to 17.5 percent.

In 2024, On Holding recorded an adjusted EBITDA margin of 16.7 percent on sales of 2.318 billion francs

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