Sportswear brand On misses quarterly sales view as consumers cut back

Sportswear brand On reported second-quarter net sales of 850.3 million Swiss francs, falling short of Wall Street estimates of 878.16 million francs. The company attributed the miss to a challenging consumer environment and increased costs, including those from U.S. tariffs. Executives emphasized a focus on profitability over sales volumes to avoid discounting.

Despite the sales shortfall, On raised its full-year gross profit margin outlook to at least 65%, up from a previous expectation of 64.5%. The company also provided a wider net sales outlook for the full year, expecting it to be in the range of 3.47 billion to 3.56 billion Swiss francs on a constant currency basis.

Sales growth in On's key Americas market, which represents over half of its revenue, slowed to 13% in the second quarter on a currency-adjusted basis, down from 17% in the prior quarter. However, the company continued to see strong performance outside its core market, with Asia-Pacific sales rising 54.7% on a constant-currency basis.