On Holding AG (NYSE: ONON) saw its stock surge 5.71% in pre-market trading on Tuesday following the release of its impressive first-quarter 2025 financial results and an upgraded annual sales forecast. The Swiss sportswear company, backed by tennis legend Roger Federer, has demonstrated robust growth and strong market demand for its products.

The company reported record quarterly net sales of 726.6 million Swiss francs ($861.41 million), representing a remarkable 43% year-over-year increase. This figure significantly surpassed analysts' expectations of 681.2 million Swiss francs. On Holding's success can be attributed to its multi-channel strategy, with notable growth in both direct-to-consumer and wholesale channels. The company's CEO and CFO, Martin Hoffmann, highlighted that April was "the strongest month that we ever had in our history," indicating continued momentum into the second quarter.

In light of these strong results, On Holding has raised its full-year 2025 net sales growth forecast to at least 28% on a constant currency basis, up from the previous expectation of 27%. The company's optimism is fueled by successful product launches, including the Cloud 6 and Cloudsurfer 2, as well as high-profile collaborations such as the one with actor Zendaya. However, investors should note that the company slightly lowered its annual adjusted core profit margin growth forecast to 16.5%-17.5% from the previous 17%-17.5%, partly due to potential impacts from U.S. tariffs on its production hubs in Vietnam and Indonesia.