ONON stock jumped Tuesday after the Swiss running shoe maker cleared Q4 expectations. On also gave a few insights into the expected impact from President Donald Trump's tariffs.
On Holding, the parent company behind the On running shoe brand, reported earnings of 37 cents per share adjusted, improving from a loss of 6 cents per share last year.
Revenue increased 32% to $675 million.
FactSet analysts expected earnings of 20 cents per share on $660.8 million in sales.
Wholesale revenue jumped 26% to $346 million, while direct to consumer sales increased 40% to $330 million.
On said it enters 2025 with "remarkable brand momentum," that has been "fueled by strong demand in the early months of the year."
The shoemaker expects to achieve a net sales growth rate of at least 27% for the year, with net sales of at least 2.94 billion Swiss francs ($3.31 billion). On predicts a higher growth rate in the first half of the year due to comparison dynamics and the timing of key product launches, including the Cloud 6.
FactSet analysts expect full-year revenue of $3.3 billion with earnings of $1.03 per share.
Tariffs could also have an adverse impact on business, On warned in its 20-F filing with the SEC. Trump's 25% tariffs on imports from Canada and Mexico, as well as an additional 10% increase to tariffs on Chinese goods, took effect overnight. Trump has pledged tariffs on EU products next.
Still, the shoemaker appears to have avoided much of the impact so far.
On said in 2024 that it sourced about 90% of its shoes and approximately 60% of its apparel and accessories from Vietnam. The company last year sourced about 7% of its apparel and accessories from China. None of On's running shoes were sourced from China last year, the company said. On also did not source any goods from Canada or Mexico in 2024.
On Stock Performance
ONON stock jumped 5.8% Tuesday. Shares are working to establish a bottom after a steep four-week slide.
On stock appears to have found support around its 200-day line. Shares have traded tightly around that level over the past two weeks, according to MarketSurge charts.
On sprinted to a record high of 64.05 on Jan. 31, but has been on a downtrend since. ONON stock has a 21-day ATR of 4.84%.
The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
ONON stock retreated 7.6% in 2025.
Shares of Hoka maker Deckers Outdoor slid 2.5% Tuesday. DECK stock has tumbled about 40% from its Jan. 30 record high of 223.98.
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