Shares of On Holding AG (ONON) experienced an uptick on Tuesday following the Swiss sneaker manufacturer’s announcement of revenue figures that exceeded analysts’ expectations for the first quarter. Alongside these results, the company has raised its sales forecast for the full fiscal year.

First Quarter Earnings Overview

For the first quarter, On Holding reported adjusted earnings per share of 0.21 Swiss francs (approximately $0.25), alongside revenue totaling CHF 726.6 million ($863.5 million). In contrast, analysts had anticipated earnings of CHF 0.21 and revenue of CHF 684 million ($812.9 million).

CEO’s Insights and Strategic Outlook

Martin Hoffmann, co-CEO and CFO, who will transition to the sole CEO role effective July 1, emphasized the company’s strategic focus on “bold innovation, operational excellence, and elevated consumer experiences.” Hoffmann noted that these efforts are crucial for capturing market share amidst ongoing market uncertainties.

Revised Sales Projections

The company has updated its full-year sales growth projection, now anticipating an increase of at least 28% on a constant currency basis, adjusted from a previous estimate of 27%. However, it has slightly reduced the lower end of its adjusted EBITDA margin outlook from 17.0% to 16.5%.

Global Trade and Operating Challenges

On Holding acknowledged the impact of recent shifts in global trade policies, which have introduced a higher degree of uncertainty in planning. The company is contending with potential increases in customs and freight costs, supply chain volatility, and the depreciation of major operating currencies against the Swiss Franc.

Market Response

Following the report, On Holding’s share price increased by 5%, recovering slightly after entering the day down about 6% since the beginning of the year.