Swiss running shoe maker On Holding reported higher profit and sales for the fourth quarter, driven by strong demand for its performance footwear. The company's revenue growth outpaced market expectations, with gross margins improving due to favorable product mix and pricing power. On's direct-to-consumer channels continued to expand, contributing to overall sales gains during the holiday season.

Despite the quarterly strength, On Holding's 2025 sales guidance fell short of analyst projections, triggering a sell-off in after-hours trading. Investors had anticipated stronger momentum following the company's robust holiday performance and expansion into new markets. The conservative outlook suggests potential headwinds in key regions or increased competition in the premium running shoe segment.

The mixed results highlight the challenges facing athletic footwear companies in balancing growth with profitability. While On Holding demonstrated its ability to deliver strong quarterly results, the tempered forward guidance underscores the uncertainty in consumer spending patterns and competitive dynamics in the performance footwear market.