CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
On Holding reported net sales of CHF831.9M vs. CHF727M, CHF10M above estimates, marking 14.5% reported growth (26.4% constant currency). Adjusted EPS surged 68.2% to CHF0.37 vs. CHF0.22 in the prior year and CHF0.10 above consensus, while gross margin expanded 430 bps to 64.2% despite U.S. tariff headwinds. We view the post-earnings share weakness as a buying opportunity and believe On remains the top name in footwear given its execution and brand strength. The company raised full-year gross margin guidance to at least 64.5% while reiterating constant currency growth of at least 23%. Geographic performance was broad-based, led by Asia-Pacific's 44.4% growth, while both DTC and Wholesale channels showed healthy momentum. The continued margin expansion demonstrates On's pricing power and operational leverage, with apparel emerging as a key growth driver at 45.1% growth. We expect the company to maintain its premium positioning while expanding globally under its new co-CEO leadership structure.