Q2 2025 On Holding AG Earnings Call Transcript
Key Points
- On Holding AG (ONON) reported a 38% increase in net sales on a constant currency basis, reaching CHF749.2 million, surpassing expectations.
- The company achieved a gross profit margin expansion to 61.5% and an adjusted EBITDA margin of 18.2%, reflecting strong premium positioning.
- On Holding AG's DTC channel showed exceptional growth, with net sales up 54.3% year-over-year at constant currency, elevating the DTC mix to 41.1% of sales.
- The company experienced triple-digit growth in the APAC region, with net sales up 110.9% year-over-year on a constant currency basis.
- On Holding AG's apparel business delivered a 75.5% growth at constant exchange rates, indicating strong consumer engagement and expansion beyond footwear.
- The company faced a net loss of CHF40.9 million due to unrealized foreign exchange impacts, primarily from the valuation of US dollar-based assets.
- On Holding AG is dealing with new tariffs, increasing import duties to 40% for products from Vietnam and 39% from Indonesia, which could impact cost structures.
- Despite strong sales growth, the company is cautious about the macroeconomic environment, which could affect future performance.
- The US dollar's continuous weakness against the Swiss franc poses ongoing foreign exchange headwinds for the company.
- The company anticipates a tougher comparison in the second half of the year due to strong performance in the previous year, potentially impacting growth rates.
Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to On Holding AG Q2 2025 results. (Operator Instructions)
I would now like to turn the call over to Liv Radlinger, Head of Investor Relations. Please go ahead.
Good afternoon, and good morning to our investor community. Thank you for joining On Holding's 2025 second quarter earnings conference call and webcast.
With me today on the call are On's Executive Co-Chairman and Co-Founder, David Allemann, and CEO and CFO, Martin Hoffmann.
Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our annual report on Form 20-F for the 2024 fiscal year filed
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