Nov 12 (Reuters) - On Holding ( ONON ) on Wednesday

raised its annual revenue target for the third time this year

after beating quarterly sales expectations, thanks to strong

demand for its running shoes and sneakers despite price hikes.

Affluent consumers in the United States, On's biggest

market, continue to splash out on items such as Coach handbags

and Birkenstock clogs, in contrast to a broader slowdown in

spending from lower-income households.

"Customers did not slow down buying our products even though

we did some price increases as of the 1st of July... We actually

increased our share of full-price sales in the quarter," CEO

Martin Hoffmann told Reuters in an interview, adding that On

customers tend to be less sensitive to price increases.

On's Cloudmonster running shoe range starts at $170, while

its Roger Pro tennis shoes, developed in collaboration with

Roger Federer, sell for $220.

Zurich-based On now expects 2025 net sales of 2.98 billion

Swiss francs ($3.76 billion), up from 2.91 billion Swiss francs

expected earlier, and it raised its gross profit margin forecast

to 62.5% from a prior target range of 60.5% to 61%.

On reported third-quarter sales of 794.4 million Swiss

francs, up 24.9% from the same period a year ago, and beating

the average analyst forecast of 726.8 million Swiss francs,

according to data compiled by LSEG.

The brand has been doing especially well with shoppers in

Asia, with sales up 94.2% in the quarter.

EASILY DIGESTING TARIFF PRESSURES

On, like other sportswear brands, has been impacted by U.S.

tariffs imposed on key manufacturing hubs Vietnam and China, and

raised prices partly to mitigate the increased cost of importing

its products.

However, given strong sales, Hoffmann said no further price

increases were planned in the coming months and the first part

of 2026.

"We can easily digest the tariffs that we have, and we still

drive a better margin than what we anticipated we will have,"

said Hoffmann.

In a discount-heavy sportswear market, Hoffmann said On will

keep targeting full-price sales in the crucial holiday shopping

season.

($1 = 0.7931 Swiss francs)