09:14 AM EST, 11/12/2025 (MT Newswires) -- On Holding ( ONON ) lifted its full-year sales growth outlook on Wednesday as the Swiss sneaker maker reported better-than-expected third-quarter results and said it's not planning any holiday season discounts.

The company now anticipates sales to come in at 2.98 billion Swiss francs ($3.73 billion) for 2025, representing annual growth of 34% at constant currency terms, compared with prior projections for an increase of at least 31%. The current consensus on FactSet is for 2.97 billion francs.

Gross profit margin is pegged at around 62.5% for the current year, up from the previous guidance range of 60.5% to 61%, reflecting "our commitment to full price sales during the holiday season," Chief Financial Officer Martin Hoffmann said during an earnings call, according to a FactSet transcript.

On's New York Stock Exchange-listed shares spiked 12% in the most recent premarket activity.

"As we look at our midterm profitability ambition, a significantly higher gross profit margin achievement expected for this year provides us with a strong baseline and increased confidence in our ability to exceed our stated gross profit margin target for 2026 despite the full impact of tariffs next year," Hoffman said.

For the September quarter, the company posted adjusted earnings of 0.43 francs per class A share, up from 0.15 francs a year earlier, topping the Street's view for 0.27 francs. Sales climbed to 794.4 million francs from 635.8 million francs, ahead of the average analyst estimate of 763 million francs.

Shoe revenue advanced 21% to 731.3 million francs, while apparel and accessories jumped 87% and 145%, respectively. Net sales in the Americas gained 10% to 436.2 million francs. Sales in Europe, the Middle East, and Africa inclined 29%, while Asia-Pacific soared 94% to 144.9 million francs.

Sales in the direct-to-consumer channel rose 28% to 314.7 million francs, while the wholesale channel saw growth of 23% to 479.6 million francs. Gross profit margin improved to 65.7% from 60.6% in the prior-year quarter.

"We continue to believe (On's) robust underlying demand momentum makes it an attractive opportunity and expect it to benefit from increasing scarcity value as a winner in a tougher discretionary spending environment," Truist Securities said in a client note. The brokerage has a buy rating on the stock.