ONON APAC Nears 20% of Sales, Signals a New Growth Phase

The Asia-Pacific (APAC) region has emerged as the primary engine for On Holding AG’s ONON next phase of global expansion. During the third quarter of 2025, APAC delivered its fourth consecutive period of triple-digit constant currency growth at 109.2%. This surge resulted in reported net sales for the region reaching CHF 144.9 million, representing a 94.2% year-over-year increase. This pace is significantly higher than the growth seen in the Americas and Europe, Middle East and Africa (EMEA), which rose 21% and 33% on a constant currency basis, respectively.

The APAC region accounted for 18.2% of third-quarter net sales, a significant jump from 11.7% in the prior-year period. The nine-month performance further highlights this shift in revenue concentration. For the period ending Sept. 30, 2025, APAC net sales climbed to CHF 384.6 million, a 106.6% increase compared to the prior year. Based on total global net sales of CHF 2,270.2 million for the same period, the region now accounts for 16.9% of the company's total sales mix.

This trajectory signals that APAC is firmly on track to contribute 20% of total sales, establishing it as a primary engine for the next phase of global expansion. Management attributed this momentum to sustained strength in China and Japan, alongside accelerating adoption in South Korea and Southeast Asia.

Strategic retail expansions like the new flagship store in the Ginza district of Tokyo serve as premium hubs for the brand, while high-profile athletic achievements at the World Athletics Championships in the city have boosted regional brand awareness. These developments confirm that the region is no longer just a high-growth market but a fundamental component of On's long-term global footprint.

What the Latest Metrics Say About ON Holding

ON Holding, which competes with Deckers Outdoor Corporation DECK and Wolverine World Wide, Inc. WWW, has seen its shares rally 17% in the past month compared with the industry’s rise of 19.9%. Shares of Deckers and Wolverine have jumped 23.4% and 27.7%, respectively, in the aforementioned period.
 

From a valuation standpoint, ON Holding trades at a forward price-to-earnings (P/E) ratio of 28.61, higher than the industry’s 18.23. ONON carries a Value Score of F. ON Holding is trading at a premium to Deckers (with a forward 12-month P/E ratio of 15.03) and Dollar General (20.09). 
 

The Zacks Consensus Estimate for ON Holding’s current financial-year sales implies year-over-year growth of 41.2%, while the same for earnings per share suggests a decline of 12.7%.
 

ON Holding currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research