On Holding by Roger Federer expects high sales despite high fees

Published: 2025-05-14 04:01:13 ET ONON

Published on 05/14/2025 at 04:01

Key takeaways

On Holding, the sportswear company backed by tennis legend Roger Federer, has raised its revenue forecast for this year. This positive outlook comes from strong demand fueled by successful promotions and new product launches. However, the company expects to have to make price adjustments to offset the impact of import duties imposed by the U.S. government.

On Holding relies heavily on Vietnam and Indonesia for its production. Vietnam plays a crucial role, with 90 percent of shoes and 60 percent of apparel and accessories produced there. The Trump administration's tariff policies threaten On's supply chain and profitability. As the company explores diversification opportunities, CEO and CFO Martin Hoffmann announced that they will selectively adjust prices in the U.S. market starting in July.

At least 28 percent net growth expected by 2025

Despite these challenges, On Holding remains optimistic about its future performance. The company now expects annual adjusted core profit margin growth within a range of 16.5 percent to 17.5 percent, slightly lower than its previous expectation of 17 percent to 17.5 percent. Full-year 2025 net sales are expected to grow by at least 28 percent on a constant currency basis, higher than the previous estimate of 27 percent. Strong demand continued in the second quarter, with April being the best-performing month ever.

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