On Holding AG, the Swiss footwear company backed by tennis legend Roger Federer, witnessed a pre-market surge of 5.54% on Tuesday. This upward movement can be attributed to the company's impressive fourth-quarter results and strong demand for its shoes and sportswear offerings during the holiday season.

The company reported fourth-quarter sales of CHF 606.6 million ($680.73 million), exceeding Wall Street estimates of CHF 593.9 million. Additionally, On Holding achieved an adjusted profit of CHF 0.33 per share, surpassing analysts' expectations of CHF 0.17. This remarkable performance was driven by the company's strategic focus on product innovation, marketing efforts targeting younger consumers, and expanding its presence through partnerships with retailers like Dick's Sporting Goods and Foot Locker.

On Holding has been rapidly gaining market share by challenging industry giants like Adidas and Nike, thanks to its comfort-oriented offerings and brand awareness initiatives. The company's direct-to-consumer sales channels, including its own retail stores and online platforms, have also contributed to achieving higher full-priced sales, allowing it to invest more in promotional efforts.