On Holding, the Swiss athletic apparel maker backed by Roger Federer, saw its shares fall in premarket trading Tuesday. The Zurich-based company issued annual sales guidance that came in below analyst expectations.
Federer, a brand ambassador and shareholder, is tied to the company’s performance through his equity stake. The guidance shortfall has raised questions about the size of his potential paper losses this year.
On Holding projects 2025 sales growth of 20% to 22%, a figure that misses the 24% consensus estimate. The company cited a more cautious consumer environment and disciplined pricing strategy as key factors.
The stock dropped roughly 12% in early trading following the announcement. That decline translates into a notable reduction in Federer’s holdings, though the exact figure depends on his current share count.
Federer invested in On Holding in 2019, joining the brand as a partner and ambassador. His involvement has been central to the company’s marketing push, particularly in tennis and lifestyle categories.
The company’s approach to pricing remains deliberate, executives said during the earnings call. They emphasized protecting brand equity over chasing volume, a stance that may temper short-term revenue growth.
Analysts noted that On Holding’s premium positioning carries risks if consumer spending weakens further. The company’s products, including its signature CloudTec running shoes, compete in a crowded market.
Despite the guidance cut, On Holding reiterated confidence in its long-term strategy. Management pointed to expanding distribution and new product launches as drivers for future quarters.
For Federer, the immediate impact is a mark-to-market loss on his paper wealth. Still, his stake remains substantial, and the brand’s trajectory depends heavily on execution rather than short-term stock moves.
The broader market reaction reflects investor caution about premium apparel demand. On Holding’s forecast adds to a series of mixed signals from consumer brands navigating post-pandemic spending shifts.
Shares of On Holding have been volatile over the past year, swinging with quarterly results and macroeconomic headlines. Tuesday’s decline marks another chapter in that pattern, with investors weighing growth against valuation.
