On Holding AG ONON is scheduled to report first-quarter 2025 results on May 13, before the opening bell.

ONON’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed on two occasions, the average surprise being 45.6%.

Trend in Estimate Revision of ONON

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 24 cents, indicating a deterioration of 36.8% from 38 cents reported in the year-ago quarter. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

For revenues, the consensus mark is pegged at nearly $778.9 million. The metric suggests an increase of 34% from the year-ago quarter’s figure.

On Holding AG Price and EPS SurpriseOn Holding AG Price and EPS Surprise

On Holding AG price-eps-surprise | On Holding AG Quote

Let’s take a look at how things have shaped up in the quarter.

Factors Likely to Shape On Holding’s Quarterly Results

On Holding’s first-quarter performance is expected to have benefited from robust direct-to-consumer (DTC) traction, strategic global expansion and sustained product innovation. Strong brand resonance, particularly among younger consumers, expansion of core franchises like Cloudmonster and Cloudsurfer, and the launch of Cloud 6 are likely to have supported the company’s performance in the to-be-reported quarter.

ONON’s DTC strategy, encompassing both retail and e-commerce, continues to be a central growth engine. The company entered 2025 with significant momentum from elevated brand engagement, a premium pricing strategy and creative marketing campaigns, including a Super Bowl advertisement featuring Roger Federer and Elmo. The initiatives are likely to have driven traffic and conversion across channels in the first quarter.

Geographically, On Holding is expected to have delivered broad-based momentum in the first quarter. The Asia-Pacific region, particularly China, Japan, and emerging Southeast Asian markets, has seen accelerated growth backed by retail expansion and targeted campaigns like the Lunar New Year collection. Europe’s performance has been supported by brand-building efforts and physical retail presence in key cities like Paris and Milan. In the Americas, On’s premium positioning, selective wholesale partnerships and increasing brand awareness are expected to have fueled growth.

On the cost front, elevated investments in brand marketing, LightSpray innovation and technology infrastructure may have weighed on margins in the first quarter. Additionally, the ramp-up of the new automated warehouse in Atlanta could have led to transitional costs. Foreign exchange fluctuations — especially between the U.S. dollar and the Swiss franc — could dent margins in the first quarter.

Story Continues

What Our Model Says About ONON Stock

Our proven model predicts an earnings beat for On Holding this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

ONON’s Earnings ESP: On Holding has an Earnings ESP of +4.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ONON’s Zacks Rank: The company presently has a Zacks Rank #3.

Other Stocks Poised to Beat on Earnings

Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.

Atour Lifestyle Holdings Limited ATAT has an Earnings ESP of +6.45% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Atour Lifestyle is expected to register a 19.2% year-over-year gain in earnings for the to-be-reported quarter. Its earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with an average surprise being 5.2%.

Accel Entertainment, Inc. ACEL currently has an Earnings ESP of +14.29% and a Zacks Rank of 2.

In the to-be-reported quarter, Accel Entertainment’s earnings are expected to decline 16% year over year. Accel Entertainment’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 16.3%.

Playtika Holding Corp. PLTK currently has an Earnings ESP of +6.67% and a Zacks Rank of 3.

In the to-be-reported quarter, Playtika’s earnings are expected to decrease 34.8% year over year. Playtika’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed on three occasions, the average surprise being negative 26.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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