On Holding is poised to expand its relationship with Zendaya even further this fall — which should add another jolt to the sports brand that saw second-quarter sales jump 32 percent.

In an interview with WWD, Martin Hoffmann, who was elevated to sole chief executive officer and chief financial officer last month, confirmed reports that the company is working with Zendaya, an ambassador for the brand since June of 2024, on designing apparel. Without providing too many details, he said the actress is “currently working with us on the collection. We have new apparel coming in September with elements from her.”

Earlier this month, Zendaya and her longtime stylist, Law Roach, unveiled her first co-created shoe for the brand, the Cloudzone Moon.

Hoffmann said apparel continues to be a major growth opportunity for On. Although it still represents only around 7 to 8 percent of sales, the goal in the short term is to have that figure hit 10 percent. “Retail is very instrumental in growing apparel,” he said, adding that the company’s stores generally have apparel sales “well above” the 10 percent mark.

In reporting its earnings early Tuesday morning, the Zurich-based sports brand said sales blew past expectations, hitting 749.2 million Swiss francs and topping analysts’ projections of a 24 percent increase to 704 million Swiss francs.

However, the strengthening of the Swiss franc against the dollar took a bite out of the bottom line, leading to a net loss of 40.9 million Swiss francs and adjusted diluted earnings per share of 0.09 Swiss francs, well below the 0.21 Swiss francs in earnings Wall Street had been anticipated, according to Yahoo Finance.

Hoffmann stressed this was merely an accounting issue and “has nothing to do with our financial strength.”

Direct-to-consumer continues to be a driver for On. In the second quarter, net sales grew 47.2 percent to 308.3 million Swiss francs. DTC now represents 41.1 percent of the company’s overall business.

The company currently operates 54 stores around the world and Hoffmann said recent flagship openings in China and Singapore have exceeded expectations, with the Singapore store’s opening weekend the strongest of any of its previous stores. As a result, the company expects to add another five or six stores this year, four in the U.S. including one in Palo Alto, Calif., one in Mexico City, two in Seoul and “a big one” in On’s hometown of Zurich, Hoffmann said.

But DTC is not the only growth area for the brand. Wholesale sales increased 23 percent to 441 million Swiss francs in the second quarter, the company said.

By region, net sales in Europe rose 42.9 percent to 197.8 million Swiss francs; the Middle East was up 16.8 percent to 432.3 million Swiss francs, and Africa rose 101.3 percent to 119.2 million Swiss francs. In the EMEA, sales rose 46.1 percent, while in the Americas, they increased 23.6 percent to 432.3 million Swiss francs, and Asia-Pacific jumped 110.9 percent to 119.2 million Swiss francs.

Hoffmann said the growth in Europe is the company’s largest gain over the past two years and its “strategic repositioning” in that region “is paying off.” He also cited strength in the Americas, where DTC growth was especially buoyant, as well as the heightened demand the company is experiencing in Asia-Pacific.

“I’m really proud of our team,” Hoffmann said. “Halfway into our three-year plan, the momentum for the brand continues to be extremely strong globally. The power of being a premium brand is paying off.” He pointed in particular to the gross profit margin of 61.5 percent the company posted in the quarter, up from 59.9 percent in the prior-year period, as a highlight.

By category, sales of shoes rose 29.9 percent to 704.9 million Swiss francs; apparel jumped 67.5 percent to 36.7 million Swiss francs, and accessories rose 113 percent to 7.7 million Swiss francs. “Apparel really contributed strongly to our growth,” Hoffmann said. “More and more customers are starting their apparel journey with us earlier.”

Turning to tariffs, Hoffmann said that while the company is “not happy” with the increases, “it’s good to have clarity.” The bulk of On’s production is in Vietnam, where tariffs were just raised to 40 percent on transshipments.

Hoffmann said that the company is used to paying tariffs of around 20 percent to the U.S. and although this new round of taxes is not welcomed, On is strong enough to compensate for the increase in import charges and continue to focus on providing innovation, an elevated customer experience and superior service, he said.

As a result, the company raised its full-year guidance, projecting that sales will now increase at least 31 percent to 2.91 billion Swiss francs, above previous guidance of 28 percent, and it is calling for EBITDA of 17 to 17.5 percent, up from the 16.5 to 17.5 percent estimated earlier.

David Allemann, cofounder and executive co-chairman, summed it up this way: “Our Q2 results leave no doubt: On is playing the long game. We achieved a remarkable 38.2 percent net sales growth on a constant currency basis, not by chasing trends, but by building a resilient brand for decades ahead. This quarter proves our strategy is working — from our diversified portfolio of iconic footwear franchises to our stellar growth in apparel and our global brand footprint. The future of On is taking shape right now, and the most exciting chapters are ahead of us.”

Hoffmann concluded: “Our premium positioning is coming to life across every consumer touch point, with product innovation, storytelling and distribution all working together to elevate the brand further. We’re also incredibly encouraged by the strong engagement and enthusiasm we’re seeing from our retail partners, whose support adds to the momentum behind the brand. Our performance gives us strong conviction in the impact of our strategy and the opportunities ahead to build an even more distinctive and desirable global brand.”