On Holding beats first-quarter expectations, sees double-digit growth in China as Nike lags

Swiss sneaker company On saw more strong growth during its first quarter, beating Wall Street's expectations on the top and bottom lines even as direct-to-consumer revenue fell short of forecasts. During the quarter ended March 31, On's direct-to-consumer sales, revenue from its own website and stores, grew 16.4% to 322.3 million Swiss francs (US$414.2 million), falling short of the 326 million francs analysts had expected, according to StreetAccount. Meanwhile, revenue from its less profitable wholesale channel increased by 13.3% to 509.6 million francs, beating expectations of 499 million francs, according to StreetAccount. In a news release, the company said "even against an uncertain macroeconomic backdrop," it decided to raise its profitability outlook and reiterate its 2026 net sales growth forecast. "That's not particularly aimed at the consumer .... There's just a lot of things going on, like, for example, the war now in Iran that probably nobody saw coming," said co-CEO Caspar Coppetti in an interview with CNBC. "We're a bit in a bubble, I would say, as a brand, because we cater to an affluent and aspirational consumer. So our customers are not really dependent on the gas price." On is now expecting its gross profit margin to reach at least 64.5% in 2026, up from its previous forecast of 63%. The outlook continues to include a 20% tariff on imports from Vietnam into the U.S., even though the duty is no longer in effect after a ruling from the U.S. …