Federer-backed On Holding beats holiday-quarter sales, profit on strong demand

March 4 (Reuters) - On Holding ONON.N reported fourth-quarter sales and profit above Wall Street estimates on Tuesday, on strong holiday-driven demand for its shoes and sportswear offerings, helped by brand awareness initiatives.

The Swiss company backed by Roger Federer has been gaining market share rapidly, challenging bigger rivals Adidas ADSGn.DE and Nike NKE.N through its extensive product innovation and marketing focus on younger consumers.

On, which has benefited from the trend towards comfort-oriented offerings, has been expanding its shelf and online spaces at retailers such as Dick's Sporting Goods DKS.N and Foot Locker FL.N.

Its bets on direct-to-consumer sales through its own retail stores, both offline and online, have helped the company achieve higher full-priced sales, allowing it to invest more in promotional efforts.

The company's fourth-quarter sales rose 35.7% to CHF 606.6 million ($680.73 million), compared with LSEG estimates of CHF 593.9 million, according to data compiled by LSEG.

On reported an adjusted profit of CHF 0.33 per share, compared with the CHF 0.17 estimated by analysts.

On has been keen to amp up brand awareness through its partnerships, including with actress Zendaya, musician FKA Twigs and athlete Hellen Obiri, along with its marketing campaigns at events such as the 2024 Paris Olympics.

The company also debuted its presence at the Super Bowl earlier in February, with an ad campaign featuring Federer and Sesame Street's Elmo.

On expects full-year 2025 net sales of at least CHF 2.94 billion, compared to analysts' average estimate of CHF 2.97 billion.

($1 = 0.8911 Swiss francs)