• Loading stock data...
Tuesday, August 5, 2025
Tuned In returns to NYC on September 16. Hear from the biggest names in sports media. Click here to get your spot

On Says It’s Raising Prices—but Not Because of Tariffs

On says its pricing power is what differentiates it from competitors.

On-Running
On Running

On its Q1 earnings call last month, Adidas said it will likely have to raise prices on the sportswear products it sells in the U.S. because of the Trump administration’s tariff policies.

Now Caspar Coppetti, co-founder of Swiss sportswear brand On, has said On also plans to raise prices on certain products it sells in the U.S.—but tariffs aren’t to blame.

On’s Q1 sales rose 40% and came in above expectations. On the earnings call Tuesday following the company’s earnings release, Coppetti said the brand’s pursuit “to be the most premium performance sportswear brand” has put it in “a strong position to have earned pricing power in the different markets that we are in.”

Thus, he continued: “We are in the position to increase prices, and we will do this.”

Starting with the fall/winter season in July, On will increase prices in the US on selected styles “in order to really differentiate our products even more from our competitors on the premium position. And this really puts the print in a unique position and where we think we can thrive even more from a position of strength.”

This echoes what On co-founder David Allemann told Front Office Sports in March when asked if the company is concerned about Trump tariffs. He said the prospect of additional duties for imports into the U.S. weren’t a concern thanks to On’s premium pricing power: “For everything we do, we have a very premium positioning and that also gives us the ability to drive premium margins.”

This is why On Holdings is one of the companies analysts at Bernstein say is particularly well-equipped to manage tariffs and a potential consumer spending pullback.

“We believe higher-end brands will fare better for this exact reason—higher-income consumers and ability to pass on price,” Bernstein analyst Aneesha Sherman tells FOS.

The men’s Cloudmonster running shoe sells for around $170. The men’s lightweight Court Jacket is $160. 

“On should be much more protected from a broader slowdown in demand than its larger incumbent competitors,” Bernstein analysts wrote in an April note, in part because it has relatively low market share in the U.S. compared to competitors. On also boasts strong demand in both wholesale and direct-to-consumer channels, the analysts wrote.   

On’s Q1 direct-to-consumer sales increased 42% while wholesale revenue rose more than 38% from the year earlier. The brand slightly raised its sales guidance for the full year to “at least 28%” (from “at least +27%”), while acknowledging “higher levels of planning uncertainty” amid global trade policy shifts.

Noting increased uncertainty and the impact of the 10% baseline tariffs, it now expects gross profit margin in the range of 60%-60.5% vs. 60.5% previously. 

“Recent global trade policy shifts have introduced higher levels of planning uncertainty, including the potential for increased customs and freight expenses,” the company said in its earnings release.

On makes about 90% of its products in Vietnam. On April 2, President Trump announced he would impose tariffs on countries the U.S. has steep trade imbalances with, but he instituted a 90-day pause a week later. Instead, he implemented a lowered reciprocal tariff of 10%. (Before the pause, goods imported from Vietnam would have come with a 46% tariff.) That 10% tariff, which is currently in effect, is factored into On’s 2025 outlook.

“The outlook that we presented is under the assumption of the tariffs that are currently in place. So specifically for Vietnam, the 10% additional tariff during the post period that we are currently on. So that’s the base for our outlook,” Coppetti said.

Shares of On closed nearly 12% higher Tuesday.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

breaking

Disney Buying NFL Network, NFL Getting 10% Stake in ESPN

The deal rewrites the playbook for pro leagues and their TV partners.

NFL Bans Smelling Salts Over Concussion-Masking Risk

George Kittle broke the news of the ban Tuesday.
A general view as athletes compete in the women’s 10,000m final during the Paris 2024 Olympic Summer Games at Stade de France in Saint-Deanis, France, Friday, Aug. 9, 2024.

Trump Order Leads to Visa Ban for Trans Athletes in Women’s Sports

“Men do not belong in women’s sports,” a USCIS spokesperson said.
Jul 28, 2025; Arlington, Texas, USA; Dallas Wings guard Paige Bueckers (5) and guard DiJonai Carrington (21) during the game between the Dallas Wings and the New York Liberty at College Park Center.

WNBA Trade Deadline Hits Ahead of Looming CBA Chaos

The trade deadline is Thursday at 3 p.m. ET.

Featured Today

Inked Under Anesthesia: Athletes Getting $50,000 Tattoos

High-end studios, elite artist teams, and hours under anesthesia.
Coco Gauff at New York Liberty
August 2, 2025

How the New York Liberty Became the Hottest Ticket in Town

Once banished to the burbs, the Libs are now Brooklyn’s marquee attraction.
Las Vegas sign
July 29, 2025

College Sports Embracing Vegas After Years of Cold Shoulder

The Big Ten became the latest newcomer to Sin City.
2000, Jupiter, FL, USA; FILE PHOTO; Montreal Expos pitcher Hideki Irabu in action on the mound against the New York Mets at Roger Dean Stadium during Spring Training
July 28, 2025

Dead Sports Franchises Are Alive and Well on Twitter

The Expos, Sonics, and Whalers have active social media accounts.
Limited Hype

Sneaker Reselling Was Once Easy Money. Success Is Now Complicated

Vendors need to evolve what they’re selling and how they do it.
A Lululemon store at Freehold Raceway Mall in Freehold Township, New Jersey on Nov. 30, 2023
July 2, 2025

Sportswear Stocks Rise as Trump Touts Vietnam Trade Deal

Tariffs on Vietnam imports will be 20%, down from a prior threat of 46%.
Happy Gilmore 2 hockey stick putter
July 21, 2025

Callaway’s $500 ‘Happy Gilmore’ Putter Booming on Resale Market

Callaway released a limited-edition Odyssey-branded hockey stick putter.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
From vintage to unique collaborations, various Nike and Jordan shoes are displayed on a wall at Saved Soles inside West Ridge Mall.
June 26, 2025

Nike Stumbles Less Than Expected, Giving Wall Street Hope

The sports apparel and footwear giant beats Wall Street expectations.
Jun 20, 2024; Eugene, OR, USA; Detailed view of Nike Alphafly 3 racing flat at the Nike by Eugene store.
June 25, 2025

Investors Hunt for Signs Nike Has Regained Its Footing

Nike’s fundamentals are “still challenged.”
Jun 15, 2025; Oakmont, Pennsylvania, USA; JJ Spaun putts on the 18th green to win during the final round of the U.S. Open golf tournament.
June 16, 2025

‘Pandemonium’: Putter Maker Sees Sales Surge After JJ Spaun’s U.S. Open Win

The company behind Spaun’s putter is already in talks with his people.
June 13, 2025

U.S. Open Merch Pops Thanks to Oakmont’s Squirrel, Viral TikToks

There are more than 400,000 pieces of merchandise available at Oakmont.