Mission Statement, Vision, & Core Values of On Holding AG (ONON)

You look at a company like On Holding AG (ONON) and see a stock that surged after their Q3 2025 report, raising full-year net sales guidance to approximately CHF 2.98 billion, and you have to ask: what is the engine behind that kind of growth? It's not just the CloudTec® technology; it's the core philosophy-the Mission, Vision, and Core Values-that translates into a premium gross profit margin guided to be around 62.5% for the full year 2025. Do you truly understand how their mission to ignite the human spirit through movement creates such defintely strong pricing power?

Honestly, a clear corporate compass is a serious competitive advantage.

We're going to map out exactly how their stated ambition to be the most premium global sportswear brand dictates everything from their Direct-to-Consumer (DTC) strategy to their product innovation pipeline, giving you the context to judge if this momentum is sustainable or just a short-term burst of energy.

On Holding AG (ONON) Overview

On Holding AG, the Swiss performance sportswear company, has sprinted past its start-up phase to become a major force in the athletic market. Founded in 2010 in Zurich by former professional athlete Olivier Bernhard and his friends David Allemann and Caspar Coppetti, the company's core product is its innovative running shoe, built around the proprietary CloudTec cushioning technology. This unique design, which looks like a series of hollow pods on the sole, is their signature.

The product line has expanded well beyond just running shoes, now including high-performance apparel and accessories for outdoor, training, and all-day activities. Their strategy centers on premium positioning and direct-to-consumer (DTC) engagement. For the full fiscal year 2025, On Holding AG has raised its guidance, projecting reported net sales to reach CHF 2.98 billion, which translates to roughly $3.73 billion USD, reflecting a strong 34% year-over-year growth on a constant currency basis. That's defintely a pace worth watching.

Record-Breaking Q3 2025 Financial Momentum

You want to see where the rubber meets the road? Look at the latest numbers. On Holding AG's third quarter of 2025 was a record-setter, underscoring that their premium strategy is paying off handsomely. Net sales for the quarter hit CHF 794.4 million (approximately $993.0 million USD), marking a 24.9% increase year-over-year on a reported basis. This top-line growth fueled a surge in profitability.

The company's gross profit margin reached a new high of 65.7%, up 510 basis points from the prior year. Here's the quick math: higher margins like that show strong pricing power and operational efficiency, even with global supply chain noise. This performance flowed directly to the bottom line, with net income skyrocketing by nearly 290% to CHF 118.9 million in the quarter. It's not just about shoes anymore, either.

• Apparel sales grew 86.9% to CHF 50.1 million.
• Adjusted EBITDA surged 49.8% to CHF 179.9 million.
• Asia-Pacific (APAC) sales saw triple-digit constant currency growth of 109.2%.

The massive growth in apparel and the stellar 109.2% constant currency growth in the APAC region prove their global expansion is working, plus they're not just a single-product company anymore. You can dive deeper into the nuts and bolts of their balance sheet and cash flow here: Breaking Down On Holding AG (ONON) Financial Health: Key Insights for Investors.

A Leading Force in Premium Sportswear

On Holding AG is no longer an upstart; it is a clear leader in the premium performance sportswear industry. Their success isn't luck; it's a direct result of relentless innovation and a commitment to their premium brand image. They have successfully transitioned from a niche running brand to a full-spectrum sportswear company, challenging the established giants with a focus on technology and design. They're building an experiential moat with new retail stores in key global cities like Zurich, Palo Alto, and Tokyo.

This momentum, backed by a projected 34% constant currency sales growth for the full year 2025, shows they are taking market share and defining the high-end of the athletic market. They are proving that a premium price point, when paired with superior product and a strong brand narrative, can drive explosive, profitable growth. You should find out more below to understand exactly why On Holding AG continues to be so successful.

On Holding AG (ONON) Mission Statement

You're looking at On Holding AG (ONON) and trying to figure out if their incredible growth is just a flash in the pan or a durable trend. The real answer lies in their mission statement and how they execute it. A mission isn't just a poster on the wall; it's the operating manual for every strategic decision, and for On Holding AG, that mission is clear: to ignite the human spirit through movement. This simple, powerful goal guides everything, from their product development to their premium pricing strategy, and it's why their 2025 financial outlook is so strong.

This mission is the foundation for their vision to become the most premium global sportswear brand. It's the reason they can raise their full-year 2025 net sales guidance to a projected CHF 2.98 billion, representing a 34% year-over-year growth on a constant currency basis. That's not a small jump. It shows their mission is resonating globally, translating directly into high-quality, full-price sales.

Here's the quick math: when you focus on igniting the spirit, you create a product that people will pay a premium for, which is why they project a full-year 2025 gross profit margin of around 62.5%. That margin is a defintely a sign of brand power and operational excellence, not discounting.

Core Component 1: Innovation and Performance Credibility

The first core pillar of the mission-igniting the human spirit-is executed through relentless innovation and a commitment to performance. You can't inspire movement without a product that fundamentally changes the experience. For On Holding AG, this means their unique CloudTec® system, which is all about cushioned landings and explosive take-offs, and new technologies like LightSpray™.

This focus on technological advancement is what allows them to command premium pricing and drive their core business. Footwear remains the engine of growth, with net sales from this category reaching CHF 731.3 million in the third quarter of 2025 alone. This performance credibility is key to their strategy, keeping them differentiated from competitors.

• Develop industry-disrupting innovation like CloudTec®.
• Prioritize performance to justify premium pricing.
• Invest in new technologies such as LightSpray™.

The whole point is to win in performance first. If the product is truly better, the premium price point is simply a reflection of the value delivered to the athlete.

Core Component 2: Inspiring Active Lifestyles and Global Reach

The mission is not just about making a great shoe; it's about inspiring people to use it. This component focuses on building a global community and expanding their presence across all categories of movement-running, outdoor, training, and tennis. This is how they translate their mission into market share gains.

The sustained global momentum is evident in their aggressive growth targets. They are on track to complete the first two full years of their three-year plan with an excess of 33% constant currency growth each year, which is materially overachieving their initial goals. This isn't just a North American story, either; the increasing regional balance is a core strength. Their strategy is working across all markets, proving the universal appeal of the mission.

The expansion into apparel and new categories is a direct action stemming from this component. You see them moving beyond running to make their brand relevant for every part of a customer's day. This is how you build a resilient, multi-category brand that can sustain a long-term constant currency growth rate of at least 30% from 2023 to 2026. The mission drives the expansion, and the expansion validates the mission.

Core Component 3: Premium Strategy and Purposeful Design

The third component ties the mission to the business model: a commitment to premiumness, which includes sustainability and a focus on full-price sales. This isn't just a marketing buzzword; it's a financial lever. Their premium strategy is the direct reason they expect their adjusted EBITDA margin for full-year 2025 to be above 18.0%.

A key part of this strategy is their direct-to-consumer (DTC) channel, which allows them to control the customer experience and maintain full-price integrity. The DTC share of net sales reached a record high of 48.8% in the fourth quarter of 2024, and DTC sales continued to grow by 45.3% in the first quarter of 2025. Higher DTC sales mean less reliance on discounting, which is a structural driver of that impressive gross profit margin.

The commitment to sustainability-through purposeful design and strides in the circular economy-is also part of this premium positioning. Customers who value a brand that aligns with their values are less price-sensitive. This focus on long-term value over short-term volume is what makes the brand a benchmark for both performance and design in premium sportswear. You can learn more about the strategic framework that supports this mission here: On Holding AG (ONON): History, Ownership, Mission, How It Works & Makes Money.

On Holding AG (ONON) Vision Statement

You want to know what drives On Holding AG beyond the impressive stock chart, and that's smart. The company's foundational statements are not just corporate boilerplate; they are the strategic map behind the raised 2025 guidance. The direct takeaway is this: On Holding AG's vision is to be the most premium global sportswear brand, a goal they are actively funding with their CHF 2.98 billion expected net sales for the 2025 fiscal year.

This focus on premium positioning and global scale is why their gross profit margin is now projected to be around 62.5% for 2025, a meaningful jump from prior expectations. They are not chasing volume at a discount; they are building a brand that commands a higher price point.

Mission: Igniting the Human Spirit Through Movement

The mission is simple and powerful: to ignite the human spirit through movement. This isn't about just selling a shoe; it's about selling a feeling of possibility, which is a key differentiator in a crowded market. It's an empathetic approach that resonates with a broad audience, from elite marathoners to everyday walkers.

This mission is the engine for their product expansion. While footwear net sales reached CHF 731.3 million in Q3 2025, growing 30.4% at constant currency, the mission extends to apparel, which saw a surge of 86.9% year-over-year in Q3 2025, hitting CHF 50.1 million in net sales. That's a clear sign that the 'movement' mission is successfully translating across product categories.

• Inspire action, not just outfit athletes.
• Fuel growth across footwear and apparel.
• Connect product to a deeper, human purpose.

Vision: The Most Premium Global Sportswear Brand

The stated vision is to become the most premium global sportswear brand. This vision is not vague; it maps directly to their operational strategy. Being 'premium' means maintaining full-price sales, which is a tough but profitable stance. Being 'global' means pushing hard into new markets.

Look at the numbers: On Holding AG raised its 2025 adjusted EBITDA margin guidance to above 18%, a clear step-up from the previous 17% to 17.5% range. Here's the quick math: higher margins are a direct result of that premium, full-price strategy. They are proving that demand has defintely not slowed down despite price increases.

The 'global' part is visible in their geographic performance. The Asia-Pacific region, for example, delivered its fourth consecutive quarter of triple-digit constant currency growth in Q3 2025, which is an incredible pace of expansion.

Core Value: Relentless Innovation and Performance

Innovation is the core value that underpins the entire premium strategy. Their proprietary CloudTec® technology-the unique cushioning system-is the most concrete example of this. This isn't just a marketing gimmick; it's a product differentiator that justifies the premium price.

This commitment to performance is evident in their investment. While specific 2025 R&D spend isn't finalized, the company consistently allocates a significant portion of revenue to research, demonstrating a dedication to staying at the forefront of athletic technology. They are already planning product upgrades for core franchises like the Cloudrunner and Cloudmonster for spring of next year.

Core Value: Direct-to-Consumer and Experience

A premium brand must control the customer experience, and that's where the Direct-to-Consumer (DTC) channel comes in. This is a core value, as it allows them to build a strong community and gather valuable feedback. In Q3 2025, DTC net sales reached CHF 314.7 million, showing a 37.5% increase at constant currency.

This DTC focus is a key strategic building block for their long-term growth. It's how they ensure the brand story-and the premium price-is delivered consistently, whether through their own retail stores or online. If you want a deeper dive into the mechanics of this growth, you should read Breaking Down On Holding AG (ONON) Financial Health: Key Insights for Investors.

Core Value: Sustainability and Long-Term Value

Sustainability is not a side project; it's a commitment to long-term value and customer loyalty. The company is making groundbreaking strides within the circular economy. This appeals to the environmentally conscious consumer, strengthening the brand's appeal.

They are actively working to increase the use of recycled or renewable materials. For example, in 2023, 33% of materials used in their top-selling styles were from recycled or renewable sources. This focus on responsible growth ensures their momentum is built on a resilient and future-proof business model. This is how you create lasting value, not just short-term sales spikes.

On Holding AG (ONON) Core Values

You're looking for the bedrock of On Holding AG's (ONON) impressive growth, and honestly, it boils down to three core values that drive their financial performance. They aren't just feel-good posters on the wall; they are the engine behind the company's raised 2025 guidance, which now projects reported net sales of CHF 2.98 billion for the full year. That's a massive jump, and it's a direct result of living these values every day.

The company's mission is clear: to ignite the human spirit through movement. And their vision? To be the most premium global sportswear brand. Everything they do, from product development to supply chain, is filtered through that lens. Let's look at the three values that make this happen, giving you the concrete numbers you need to see the commitment.

Innovation and Performance

This is the non-negotiable value for On Holding AG. You can't be a premium brand without defintely having superior technology. Their commitment to innovation is what creates a defensible economic moat (a structural business feature that protects profits). The core of this is their proprietary CloudTec® cushioning system, which is their clear differentiator.

The company doesn't just talk about R&D; they fund it. In fiscal year 2024, they invested CHF 149.4 million into research and development. This investment pays off in product launches like the Cloudsurfer 2 and Cloud 6 in 2025, which blend high-performance running tech with lifestyle appeal. Plus, their focus on operational excellence helped push their Q3 2025 gross profit margin to a stellar 65.7%, up 510 basis points year-over-year. That's a strong signal of a premium brand maintaining pricing power and efficiency. It's simple: better product means better margins.

• CloudTec® provides an estimated 82% energy return.
• Q3 2025 Adjusted EBITDA hit CHF 179.9 million.
• Full-year 2025 Adjusted EBITDA margin is expected to be above 18.0%.

Sustainability and Social Responsibility

For a modern, premium brand, sustainability (or circular economy) isn't a side project; it's a core growth lever. Consumers, especially the high-value ones On Holding AG targets, are watching how brands perform here. The company is actively working to minimize its environmental footprint, which is smart business, not just altruism.

They have a clear, measurable goal: increase the use of recycled and bio-based materials. By 2025, they expect 47% of their product line to use recycled materials. This is up from 42% in 2023. They're also pioneering CleanCloud™ technology, which creates performance foam from carbon emissions, proving that high-tech innovation can also be green. They are targeting a significant 46% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030 from a 2019 base year. This commitment is a key factor in attracting environmentally conscious investors. You can learn more about this in Exploring On Holding AG (ONON) Investor Profile: Who's Buying and Why?

Inspiring Active Lifestyles and Global Movement

The mission to 'ignite the human spirit through movement' is the emotional core that fuels brand momentum and global expansion. This value is demonstrated through their partnerships and their direct-to-consumer (DTC) strategy, which creates a premium, seamless experience for the customer.

The brand's success on the world stage proves the performance claim. For example, athletes wearing the brand claimed their first-ever track and field gold medals at the world championships, and Hellen Obiri won the New York City Marathon in 2025. This kind of performance is the ultimate proof point. This momentum is driving their global footprint, with the Asia-Pacific region showing triple-digit sales growth in Q3 2025. Their DTC channel is also a major driver, with net sales reaching CHF 314.7 million in Q3 2025, an increase of 27.6% year-over-year. That direct connection with the customer is what builds a loyal, high-lifetime-value fan base.

• Q3 2025 DTC net sales grew 37.5% at constant currency.
• Apparel sales showed remarkable growth of 86.9% in Q3 2025.
• The brand is now present in over 80 countries.