On Holding, the Swiss sportswear maker backed by tennis great Roger Federer, saw its shares tumble after guiding to weaker-than-expected annual sales and reporting quarterly revenue that fell short of Wall Street forecasts amid softening consumer demand.
The Zurich-headquartered, U.S.-listed company said it would remain disciplined on pricing rather than resort to aggressive discounting, a stance that reassured some analysts on margins but weighed on its near-term growth trajectory. The revised guidance sent the stock sharply lower in premarket trading.
The pullback dented the paper wealth of the brand’s high-profile backers. Federer, who holds a stake in the company and serves as one of its most visible ambassadors, saw the value of his holding decline in step with the share slump.
On has built its reputation on premium running shoes and lifestyle apparel, positioning itself at the upper end of a crowded market. The decision to protect price points reflects a broader industry debate over whether to defend margins or chase volume as shoppers grow more cautious.
The results add to a run of subdued updates across the athletic apparel sector. Rivals have flagged similar headwinds in recent quarters, with several names revising forecasts as consumers rein in discretionary spending. The pressure echoes recent warnings from competitors, including Lululemon’s downgraded profit outlook tied to tariff pressures.
Despite the cautious guidance, On has continued to expand its global footprint, opening branded stores and pushing deeper into markets across Asia and North America. Executives have framed the pricing discipline as a long-term strategy to preserve brand equity rather than a retreat.
Analysts remain divided on how quickly demand will recover, with much depending on the strength of consumer spending heading into the key selling season. The company’s ability to hold prices while sustaining growth will be closely watched in coming quarters.
On is expected to provide further detail on regional performance and margin trends in upcoming updates, as investors gauge whether its premium positioning can weather a more subdued spending environment.