On Holding AG

Hello and welcome to On Holding AG Third Quarter 2025 Results Call. Please note that this call is being recorded. After the speaker's prepared remarks, there will be a question and answer session. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you. I'd now like to hand the floor over to Liv Redlinger, Head of Investor Relations. Please go ahead.

Good afternoon and good morning to our investor community. Thank you for joining ONN's 2025 Third Quarter Earnings Conference Call and webcast. With me today on the call are ONN's Executive Co-Chairman and Co-Founder, Caspar Capetti, and CEO and CFO, Martin Hoffman. Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our annual report on Form 20F for the 2024 fiscal year filed with the SEC on 4th March 2025 for a detailed explanation of such risks and uncertainties. We will further reference certain non-IFRS financial measures such as adjusted EBITDA and adjusted EBITDA margin. These measures are not intended to be considered in isolation or as a substitute for the financial information presented in accordance with IFRS accounting standards. Please refer to today's release for a reconciliation to the most comparable IFRS measures. We will begin with Kasper, followed by Martin, leading through today's prepared remarks. after which we are looking forward to opening to the call to a Q&A session. With that, I am very happy to turn the call over to Kasper.

Thank you, and a very warm welcome, everyone, to our third quarter 2025 earnings call. It is great to be back on this call with all of you and to give you an update on ON's global success, which is driven by the exceptional heat around the ON brand, our product innovation pipeline, and our accelerating profitability. Today, we're thrilled to share another outstanding quarter for ON. Our mission to ignite the human spirit to a movement is resonating worldwide and across multiple categories. It is powered by an innovation engine that continues to unlock human potential and create champions on the world's biggest stages. This quarter's performance is the direct result of our premium strategy in action, delivering incredibly strong growth and record profitability. Net sales in the quarter approached 800 million Swiss francs, growing 24.9% year over year on a reported basis, and by 34.5% at constant exchange rates. Through our commitment to premiumness, a commitment that runs from our products through our entire value chain, and driven by our pursuit of operational excellence We have also delivered exceptionally strong gross profit and adjusted EBITDA margins. Behind the results is a story of global momentum, how constant innovation, community building, and cultural relevance are coming together to elevate the on-brand as the benchmark for performance and design in premium sportswear. This success is exceptionally broad-based, with significant growth contributions from across our portfolio in performance and lifestyle, footwear and apparel, proving the global appeal of our brand. The spirit of Vaughan was everywhere this quarter, from the crowds lining up for the openings of our new stores in Tokyo, Palo Alto, or Zurich, to the thousands of people who came to see how light spray products are manufactured during Berlin marathons. Tour athletes winning major titles across our entire portfolio of sports, from track and field to trail running to triathlon and tennis, all strongly connected with audiences around the world. But nowhere was this connection and energy felt more strongly than in Asia Pacific, our fastest-growing region. The momentum there is extraordinary, with a forced consecutive quarter of triple-digit constant currency growth. In September, Tokyo became our showcase as the city hosted this year's World Athletics Championships. On's New Ginza store is one of the crown jewels in our retail collection, and the World Champs provide the perfect opportunity to express On's innovation and ambition. Jordi Wiemisch, Ditashi Kombuchi, and Bella Whitaker claimed On's first-ever track and field gold medals. These successes matter. Consumers are increasingly watching how brands perform in competition. And ON is exceptionally well positioned. The ultimate proof point for our advanced footwear technologies came 10 days ago when Helena Beer won the New York City Marathon against the stacked field of Olympic and World Champions, breaking the 22-year-old course record by almost three minutes. We are incredibly proud that she toasts the race in the Cloudboom Strike Light Spray. This win clearly demonstrates that our newest technology is being trusted and adopted by the world's best athletes in the most iconic races. Pictures like these define what we mean by athlete-first innovation. Our strategy is clear. Technology is proven at the highest level of competition and then refined to deliver the best experience for every type of runner. This elite credibility flows directly into our core performance running franchise as CloudSurfer, CloudMonster, and CloudRunner. These are the engines that have won millions of fans and driven our significant sustained growth in the run category. 2025 has been a testament to this strategy. We successfully re-energized the CloudSurfer franchise. First was the CloudSurfer 2 in the spring, and now with the new CloudSurfer Max this summer. The commercial momentum is immediate and clear. The newly launched Cloud Surfer Max ranked among the top five selling models with Keyrun Specialty Partners in its very first month. This sets the stage for 2026. We are already seeing a strong order book for the new CloudRunner 3 and CloudMonster 3, launching in Q1, while fall-winter 26 will see the launch of the new model CloudRunner Max, showcasing a significant leap in engineering and foam innovations. And on top of that, On's most groundbreaking technology, Light Spray, will help redefine the category and elevate our entire running assortment. In spring-summer 26, we will bring this championship-level technology to everyday runners for the first time with the Light Spray Cloud Monster Hyper. This is our innovation process in action, continuously and obsessively making the best possible products that push the limits of performance. Of course, ON's mission goes far beyond running. We are witnessing a unique moment where performance and innovation are key drivers for fashion and the cultural zeitgeist. ON is uniquely positioned to both drive and benefit from this trend. This quarter, our collaboration with Zendaya introduced the Cloud Zone Moon, blending ON's design innovation with refined, expressive style. In tennis, Our partnership with Roger Federer has already connected the sport to a much broader audience. This quarter, we welcomed the music artist Burna Boy to our tennis lifestyle brand, who is resonating strongly with the young demographic. These cultural moments are accelerating our connection and traction with young, aspirational consumers, including teens, cementing on as a global symbol of modern performance and style that resonates deeply with both her and him. To summarize, as ever, ON is carving its own path. Our premium strategy is working, and we are executing on our vision with precision and discipline. Our relentless focus innovation has built a durable, multidimensional growth engine, an engine that is built for the long run. Fueled by our accelerated global brand heat and awareness, the foundation for our next chapter of premium growth is stronger than ever. With that, Martin will share more on our strategic and financial highlights in the quarter and our significantly raised outlook for the year.