On has found a new playing field in Asia. In the third quarter of 2025, when its sales rose by nearly 25% year on year (35% at constant exchange rates) to net revenue of 794 million Swiss francs (860 million euros), sales in the Asia-Pacific region surged. They reached 145 million Swiss francs for the quarter, an increase of 109% at constant exchange rates, more than doubling to account for almost 20% of the Swiss sports brand’s total revenue.

In a conversation with financial analysts, the company noted that the opening of the Ginza flagship in Tokyo showcased the strength of this strategy, generating the highest monthly sales in the brand’s global network. For the group, scaling up in the region is strategic.

“Japan set the tone, but the Asia-Pacific region has shown the scale of what’s possible,” explained Martin Hoffmann, the company’s chief executive and chief financial officer.

“We’re connecting with a new generation of younger, deeply design-conscious customers, proving the worldwide appetite for On’s premium, performance-led approach. What was once a new frontier has become a major engine for the brand.”

The brand is expanding into new markets and recently opened its first two stores in South Korea, in Seoul at The Hyundai Seoul department store and at Lotte World Mall Jamsil. It also intends to build momentum in Greater China.

This points to a rapid rebalancing between the company’s regions worldwide. In the quarter, the Americas remained the brand’s largest market, with 436 million Swiss francs, up 10.3% (21% at constant exchange rates). The Europe-Middle East-Africa (EMEA) region generated 213 million Swiss francs, an increase of 29% (+33.0% at constant exchange rates).

“Europe, the Middle East and Africa delivered an exceptional quarter… We are seeing incredible demand in the UK, which has firmly established itself as one of our largest global markets, tremendous momentum in newer markets such as France and Italy, and a sustained re-acceleration of growth in the German-speaking region,” the chief executive told analysts.

He also highlighted the significant contribution of the Champs-Élysées store in Paris to the brand’s appeal. The brand will apply the same strategy in Spain, with the opening this weekend of a flagship store in Madrid, on Calle Serrano.

Direct sales rose sharply to 315 million Swiss francs, up 28% on the same period a year earlier. The wholesale channel posted sales of 480 million Swiss francs, up 23%. Above all, On’s management emphasises its strategy of positioning On in the premium segment of the sports-lifestyle market. Despite an inflationary environment, price increases in the key U.S. market have not dented demand. According to management, this validates the brand’s pricing power. Meanwhile, the company posted a record gross margin of 65.7% for the quarter, up 510 basis points year on year.

Another important takeaway for the Swiss brand is that it no longer relies solely on its footwear range, which is regularly refreshed with new models. By product category, third-quarter footwear sales totalled 731 million Swiss francs, up 21.1% (+30.4% at constant exchange rates). Apparel generated 50 million Swiss francs, up 87% (+100.2% at constant exchange rates), and accessories 13.0 million Swiss francs, up 145% (+160.8%).

Granted, apparel still represents a small share of On’s performance. But the outlook is encouraging for its chief executive: “We are not building apparel as a complement to our footwear business, but as a business within the business, serving the same communities, but with a unique product offering and customer experience. The result is that apparel generates high-value incremental growth across all our channels.” It remains to be seen whether collaborations with Zendaya or Burna Boy will boost its lifestyle sales.

Net income came to 119 million Swiss francs, up 290% year on year, for a net margin of 15% versus 4.8%. For the first nine months of the year, sales reached 2.270 billion Swiss francs, compared with 1.712 billion a year earlier, an increase of 33% (+37% at constant exchange rates). Net income declined to 135 million Swiss francs (compared with 153 million in 2024), while adjusted EBITDA reached 436 million Swiss francs (+51%) for a margin of 19% (compared with 17%).

On has raised its forecasts for 2025: constant-currency sales growth is now expected to increase by 34%, corresponding to revenue of around 2.98 billion Swiss francs. Gross margin is now targeted at “around 62.5%” and adjusted EBITDA margin above 18%.

It should be noted that the decline in net income over nine months is a reminder that growth is also accompanied by challenges related to currency effects, logistics costs and strategic investments.