Swiss sneaker manufacturer Reserved The company fell 11% in premarket trading despite issuing guidance for another year of strong growth and reporting record sales and improved profitability in 2025.

The brand, which sells high-priced sneakers and apparel, had fourth-quarter net sales of 743.8 million Swiss francs ($946 million), up 30.6% at constant exchange rates and above LSEG’s forecast of 723.5 million Swiss francs.

Full-year sales exceeded 3 billion francs for the first time, slightly above expectations of 2.99 billion francs.

The fast-growing brand said it expects net sales to grow at least 23% in 2026 on a constant currency basis. At current spot exchange rates, that would mean sales of at least 3.44 billion Swiss francs, but sell-side analysts consensus expects sales this year to be closer to 3.7 billion Swiss francs. The company expects adjusted EBITDA margin to be in the range of 18.5% to 19%.

This is now the third and final year Strategy for doubling sales By 2026, it will increase operating income to 3.55 billion Swiss francs and increase EBITDA profit margin to at least 18%, striving to become “the highest quality global sportswear brand”.

The company, which listed on the New York Stock Exchange in 2021, has been able to differentiate itself from traditional competitors such as Nike and Adidas Through innovative products and a focus on performance footwear and apparel.

“We are witnessing a fundamental social shift as people around the world replace traditional status markers with a commitment to health, longevity and performance,” said David Allemann, co-founder and executive chairman of the company. “On is uniquely positioned to meet the needs of discerning consumers.”

The company said full-year profitability also hit a new high.

This quarter, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 31.8% to 131 million Swiss francs, with a profit margin of 18.8%, exceeding LSEG’s forecast of 112.4 million Swiss francs. The company said the performance reflected operational efficiency and the strength of its brand positioning.

The Asia-Pacific region performed best, with sales in this region growing by 85.1% on a constant currency basis. Growth in the Americas and Europe, Middle East and Africa regions was 21.3% and 27.5% respectively in the three months to December.

“The strengths of our premium strategy enable us to exceed our ambitious ambitions while providing the flexibility to reinvest in high-return areas that we expect will drive our growth in the coming years,” CEO Martin Hoffmann said in a statement.

In the previously reported quarter, On’s gains surprised investors as it The third increase in guidance Continuous gains, while its revenue and profit exceeded expectations, pushing the stock up 18%. The company also said it would not offer any deals during the shopping season as it aims to become a premium brand.

Shares have been essentially flat so far this year, with some analysts saying challenges will intensify in 2026 and the stock’s valuation doesn’t fully reflect those risks.

Jefferies analyst Randal Konik, who rated the stock “underperform” in late February, said: “In a tougher pricing environment, as competitive intensity continues to rise, premium positioning alone may not be enough to sustain price-led growth without risking demand and/or more promotions.”

—CNBC’s Gabrielle Fonrouge contributed to this report