May 13 (Reuters) - Roger Federer-backed On Holding

raised its annual sales forecast on Tuesday and said it

would have to undertake selective pricing to mitigate impacts

from U.S. President Donald Trump's tariffs.

The Trump administration has implemented a baseline 10%

tariff on all trading partners globally with further tariffs on

countries such as Vietnam and Indonesia on a 90-day pause. These

two countries are major production hubs for On.

Vietnam faces a 46% tariff on exports to the U.S. if a

reduction cannot be negotiated before the moratorium expires in

July. In 2024, On sourced about 90% of its shoes and about 60%

of its apparel and accessories from Vietnam.

"We are looking into diversification, but at the same time

... pricing will be one of the elements to mitigate some of the

impacts at the moment. So we are planning to adjust some prices

in the U.S. as of July," said CEO and CFO Martin Hoffmann.

On forecast annual adjusted core profit margin growth, which

excludes interest, taxes, depreciation and amortization, in the

range of 16.5% to 17.5%, compared with previous expectations of

17% to 17.5%.

It now expects full-year 2025 net sales growth of at least

28% on a constant currency basis, up from previous expectation

of 27%.

"So looking now also into the second quarter, we see that

the demand remains strong and basically, April was just the

strongest month that we ever had in our history," Hoffmann

added.

On's first-quarter sales rose 43% to 726.6 million Swiss

francs ($861.41 million), beating estimates of 681.2 million

Swiss francs, fueled by high profile collaborations, such as

with Actor Zendaya, and new product launches including Cloud 6

and Cloudsurfer 2.

The company posted adjusted profit of 0.21 Swiss francs per

share, compared with 0.22 Swiss francs expected by analysts

according to data compiled by LSEG.

($1 = 0.8435 Swiss francs)