On Holding delivered $853 million in second-quarter net sales, up 32% year-over-year and 38.2% on a constant currency basis. Direct-to-consumer sales jumped 47.2% to a record 41.1% of revenue, apparel grew 67.5%, and Asia-Pacific revenue more than doubled. Gross profit margin expanded to 61.5%, with the company’s full-year guidance already factoring in new 40% U.S. tariffs on its Vietnamese-made footwear. On now expects at least 31% constant-currency net sales growth in 2025, or about $3.33 billion, with a gross margin of 60.5–61% and an adjusted EBITDA margin of 17–17.5%.
The quarter also reflected On’s growing cultural footprint: In February, the “Soft Wins” campaign with Elmo and Roger Federer aired during the Super Bowl; in April, Zendaya entered a multi-year creative partnership that kicked off with the C Prinz–directed “Dream Together” film; in May, FKA twigs introduced a capsule that fused dance and design; and On’s Loewe collaborations, first launched in 2022, continued to elevate its luxury positioning.
Minutes after the brand’s earnings call on Tuesday, Glossy spoke with David Allemann, co-founder and executive co-chairman, about On’s DTC sales jump, Asia strategy, and cultural cachet via tennis and luxury collaborations.
DTC hit a record 41.1% of sales this quarter. What’s driving that growth?
“We’re very pleased with the DTC growth, which was fueled by broad-based momentum across communities and user groups. Our rapid retail expansion is also a major driver — the bets we’ve placed in retail build both product and brand, and it’s really taking off. It’s giving us a broader brand halo. Will it overtake wholesale? I don’t know, and frankly, we don’t care — we want to meet the customer where they are. We’re aiming for a balanced portfolio between wholesale and DTC.”
Greater China sales more than doubled. How are you protecting the premium brand as you scale in Asia?
“We’re still a small player in Asia, which lets us stay very focused on being a premium and performance brand. We tap into momentum around sports, wellness, longevity and the appreciation of premiumness in Asia. We resonate strongly with the Asian consumer. Our Chengdu store had our strongest first weekend ever, and 15% of sales were apparel.”
Apparel is one of your fastest-growing categories. Could it become a revenue anchor?
“Most things we’ve started began small — 15 years ago, it was one running shoe. If we stay persistent and true to our vision to be the most premium brand, apparel can absolutely grow into a significant category. That’s the path we’re on.”
How are tariffs impacting your plans?
“As a very premium brand, we’re well-positioned to mitigate the situation. Tariffs in Switzerland don’t affect us because most production is in Vietnam. Our guidance for the rest of the year already factors in the Vietnam tariffs.”
Tennis has been a major visibility driver this year. How do you turn those moments into demand?
“Tennis is probably the most premium spectator sport. Iga [Świątek], Ben [Shelton] and many of our other athletes are incredible heroes for a broader audience, showcasing the brand and performance on court — that’s the biggest advertising campaign for our tennis category. We amplify it with high visibility in stores. And we have Roger Federer as a partner, which helps, as well.”
How do you decide which products get the luxury treatment, like with Loewe?
“We work closely with JW Anderson and his vision for the product to develop Loewe collaborations, which give us another level of elevation. Cloudtilt is now one of nine franchises making more than 5% of top line each. The latest launch, the Cloudzone with Zendaya, is flying off shelves — so that could be in the cards for the future.”
