11:59 AM EDT, 08/12/2025 (MT Newswires) -- On Holding ( ONON ) reported stronger-than-expected second-quarter sales on Tuesday, prompting the Swiss sneaker maker to raise its full-year guidance.

Net sales for the June quarter jumped 32% year over year to 749.2 million francs ($927.6 million) and surpassed the FactSet-polled consensus of 703.1 million francs. The company, however, swung to an adjusted loss of 0.09 francs per class A share from earnings of 0.14 francs per share a year earlier. Analysts projected EPS of 0.22 francs.

For 2025, On now anticipates net sales of at least 2.91 billion francs, up from its previous outlook of 2.86 billion francs. Wall Street is looking for 2.93 billion francs. The updated revenue guidance implies 31% growth year over year on a constant currency basis, compared with the prior growth forecast of 28%.

The company now expects gross profit margin of 60.6% to 61%, compared with a prior range of 60% to 60.5%. Its New York Stock Exchange-listed shares were up 7% intraday.

"Considering our strong performance in (the second quarter), continued powerful momentum in the first weeks of (the third quarter), a strong order book for the fall winter season and the continued efficiency tailwinds driven by our focus and commitment to operational excellence, we are increasing our 2025 guidance across all line items," Chief Executive Martin Hoffmann said on a call with analysts, according to a FactSet transcript.

The outlook takes into account the impact of 20% tariffs on US imports from Vietnam, said Hoffmann, who is also the company's chief financial officer.

"Within this guidance, we still embed prudence to reflect the uncertain macroeconomic outlook in the second half of the year," he said. "Given the ongoing devaluation of the US dollar against the Swiss franc, the second half of the year is expected to face ongoing foreign exchange headwinds."

Second-quarter direct-to-consumer net sales jumped 47% year over year, while the wholesale channel rose 23%.

Sales in the Americas advanced 17%, while Europe, the Middle East and Africa increased 43%. Asia-Pacific sales more than doubled at 119.2 million francs.

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