our global brand footprint,” David Allemann, co-founder and executive co-chairman of On, said.  While the company’s quarterly performance has been consistent since 2023, this quarter carried a special set of hurdles: a strengthening Swiss franc that eroded profit, a 20 per cent US tariff on Vietnamese imports where the brand sources majority of its products and a sneaker category that has softened for many rivals. The stronger Swiss franc directly eroded Q2 earnings as net income swung to a loss of CHF40.9 million from a profit of CHF30.8 million a year earlier.  This mirrors a common theme across Swiss exporters, from luxury watchmakers to industrials: even when operational performance is stellar, a strong franc can cloud the headline results.  Regional performance Geographically, the growth is broad-based. Americas revenue rose 24 per cent, EMEA climbed 43 per cent, and Asia Pacific more than doubled. “The continued triple-digit growth in Asia as a whole is nothing short of amazing, including new expansions for our brand into Singapore and Thailand,” said Allemann. Last month, the company opened its first Southeast Asia flagship store in Singapore at Jewel Changi Airport. Spanning 9300sqft and two floors, the store has a full range of On gear, including training apparel.  “The store delivered close to the highest daily sales across our global retail fleet during its opening weekend,” Martin Hoffmann, CEO and CFO of On, said in the company earnings call.  The company’s net sales in Greater China more than doubled, driven by more than 50 per cent same-store growth in its own retail stores, even higher growth rates in e-commerce channels and the addition of powerful new retail stores. “Our flagship store in Chengdu outperforms our expectations on all key retail metrics and will serve as a blueprint for our future retail expansion in this market,” he added.  The company is plotting plans to open more stores in Seoul, Mexico City, Palo Alto and Zurich this year. It now expects FY25 sales of at least CHF2.91 billion, up from its earlier forecast of CHF2.86 billion, and is projecting a gross margin of up to 61 per cent, well above many peers. “This increased outlook already includes the impact of a 20 per cent incremental tariff on imports to the US from Vietnam than the 10 per cent assumed in our previous guidance,” Hoffmann said.  Premium playbook and beyond footwear According to Allemann, On’s premium positioning drove further expansion in its gross profit margin to 61.5 per cent and adjusted EBITDA margin to 18.2 per cent.  “While On is fundamentally a sports brand, the cultural shift towards sport as the new uniform and fashion means we’re also a lifestyle brand, unlocking a much larger addressable market,” he said. “Our hugely successful collaboration with Loewe on the Cloudtilt, which sold out almost entirely within days, retailing at $590, perfectly illustrates this intersection.  “The seed for the most premium global multi-sports brand is planted,” he added.  While shoes still account for nearly 94 per cent of On’s sales, the company is betting heavily on apparel as its next growth engine. The sector delivered net sales growing of 75.5 per cent at constant exchange rates.  “In the first half of this year, we sold more apparel items than one of our most successful footwear franchises, the Cloudtilt,” Allemann said.  Earlier this month, On launched ‘Coudzone Moon’, a co-created shoe with American actress Zendaya and her longtime stylist Law Roach for the brand’s Fall 2025 campaign.  “We recently previewed our Spring/Summer ’26 collection during Paris Fashion Week and launched new apparel with Zendaya which will further elevate awareness,” he said.  The company is also building out its training line with the artist FKA Twigs. Further reading: How tariffs could derail Under Armour’s brand rebuild.