On Holding AG Reports Strong Q2 2025 Growth Amid Currency Challenges

On Holding AG (NYSE: ONON) delivered a mixed Q2 2025 performance, with net sales surging 38% year-over-year at constant currency to CHF 749.2 million. The Swiss athletic brand's gross margin expanded 160 basis points to 61.5%, while adjusted EBITDA margin improved to 18.2%. Direct-to-consumer sales led the charge with 54.3% growth, now representing 41.1% of total revenue.

Despite these operational wins, the company reported a net loss of CHF 40.9 million due to foreign exchange headwinds, a stark reversal from last year's profit. Apparel sales grew 75.5%, signaling successful diversification beyond footwear. The Asia-Pacific region delivered standout performance with over 110% growth at constant currency.

Management raised full-year guidance, now projecting CHF 2.91 billion in sales with EBITDA margins between 17-17.5%. Shares traded 2.77% lower at $48.43 following the report, as investors weighed strong fundamentals against currency-related losses.