On Holding reported a double-digit jump in fourth-quarter sales, fueled by an explosive performance in Asia-Pacific and record-high gross margins, even as a decline in net income underscored the costs of its rapid global scaling.
The Swiss-based sportswear brand (NYSE:ONON) announced on Tuesday that net sales for the period ending December 31, 2025, rose 22.6% to CHF 743.8 million.
When adjusted for constant currency, growth was even more pronounced at 30.6%, highlighting the brand's continued momentum in the premium athletic market despite a volatile global retail environment.
The star of the quarter was the Asia-Pacific (APAC) region, where net sales skyrocketed 70.8% to CHF 126.5 million.
On a constant currency basis, APAC growth reached a staggering 85.1%, signaling that the brand's expansion strategy in key markets like China is yielding significant returns.
By contrast, the Americas saw a more modest increase of 12.8%, while the EMEA region grew by 24.2%.
On’s ability to maintain its premium pricing was evident in its profitability metrics.
Gross profit margin climbed to 63.9% from 62.1% a year earlier, a result of the company's strong brand heat and a shift toward higher-margin direct-to-consumer (DTC) sales.
Adjusted EBITDA also saw a healthy 31.8% increase, reaching CHF 131 million.
However, the bottom line told a more complex story.
Net income for the quarter fell 22.9% to CHF 69.1 million, down from CHF 89.5 million in the prior-year period.
This compression brought net income margins down to 9.3% from 14.8%.
Basic and diluted earnings per share both dropped to CHF 0.21, reflecting the increased operational expenses associated with the company’s aggressive infrastructure and personnel investments.
While shoes remain the core driver of the business—accounting for CHF 687.3 million of total sales—the company’s push into lifestyle and performance apparel is gaining traction.
Apparel sales grew 38.3% during the quarter, while accessories jumped 117.7%, albeit from a smaller base.