Sneaker brand On posts record quarter and lifts margin outlook, helped by US tariff refunds

Swiss sportswear brand On reported record third-quarter net sales of CHF 931.4 million on Tuesday, 10 November, up 17.2% year on year (17.8% at constant currency). It was the first time quarterly sales topped CHF 900 million, the company said.

Tariff refunds and margins

On booked about CHF 52.6 million in US tariff refunds after a US Supreme Court ruling invalidated some of President Trump’s levies, BoF/Bloomberg reported. Gross margin reached 72.6%, or 66.9% excluding the refunds. Direct-to-consumer sales grew 25%, and apparel sales under its women’s focus rose 38.7%, helped by a collection with actor Zendaya.

Outlook

On kept its forecast for full-year sales growth in the low-20% range at constant currency and now expects a gross margin of about 67.5%, or about 66% without refunds, up from at least 65%. Its underlying adjusted EBITDA margin outlook of 19.5–20% was unchanged. Investors were unimpressed: shares fell about 5% in premarket trading, according to Investing.com, as the profit beat was flattered by the one-off refund.