Shares of Swiss sportswear maker On Holding surged more than 20% in early trading on Wednesday after the company raised its full-year outlook for the third consecutive quarter, citing continued strength in demand for its premium athletic footwear and apparel.

The Zurich-based company said it now expects 2025 net sales to rise at least 34% from last year to 2.98 billion Swiss francs ($3.72 billion), up from a prior forecast of 31% growth.

Analysts surveyed by FactSet had projected 2.97 billion francs for the year.

On also lifted its gross profit margin forecast to around 62.5%, compared with the earlier range of 60.5% to 61%.

The company now anticipates adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) margins to exceed 18%, up from its prior estimate of 17% to 17.5%.

Strong quarterly results lift investor confidence

For the three months ended September 30, On reported a profit of 118.9 million Swiss francs, or 36 cents a share, more than tripling its profit from 30.5 million francs, or 9 cents a share, a year earlier.

Adjusted earnings came in at 43 cents a share, easily beating analyst estimates of 26 cents.

Quarterly net sales climbed to 794.4 million francs from 635.8 million francs a year ago, surpassing Wall Street’s forecast of 763 million francs.

“We’re strengthening our connection with customers through experiences that showcase our premium positioning—from our most elevated stores to the growing momentum of our apparel business,” said Martin Hoffmann, On’s chief executive and chief financial officer.

He added that the results gave the company confidence “both for the holiday season and for the long term.”

On defies industry slowdown

On’s upbeat forecast stands in contrast to cautious outlooks from rivals.

Hoka maker Deckers Outdoor recently warned that consumer spending may weaken in the months ahead, while Nike—despite posting stronger-than-expected sales—has flagged ongoing challenges in China.

Retail analysts expect most sportswear companies to rely on discounts and promotions to drive demand during the holiday season.

On, however, is taking a different route.

Co-founder and executive co-chairman Caspar Coppetti told CNBC that the company has no plans to offer Black Friday deals.

“On will be full price through the holiday season,” he said.

“This is against the backdrop of a very competitive and discount-driven environment. Being able to command a much higher selling price really sets On apart.”

A premium push in the sportswear market

While On competes with established names such as Nike, Hoka, and Brooks Running, its strategy increasingly mirrors that of luxury brands—prioritising exclusivity and innovation over discounts.

The company has sought to position itself as the most premium sportswear brand on the market by pairing high-end design with technological innovation.

That approach appears to be paying off, as On continues to gain market share even in a challenging retail environment.

Still smaller than its legacy competitors, On’s steady growth has underscored investors’ belief that consumers remain willing to pay for premium performance gear—a sentiment that Wednesday’s rally in its stock price made clear.

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