ZURICH, August 11, 2026, 05:45 EDT
- Net sales for the second quarter increased by 13.5% to CHF 850.3 million, coming in 3.2% under analyst expectations.
- Direct-to-consumer sales climbed 26.0%, while wholesale rose by just 4.8%.
- Gross margin rose to 65.4%, leading to an increased full-year goal of at least 65.0%.
- The forecast for full-year sales is now set between CHF 3.47 billion and CHF 3.56 billion at present exchange rates.
On Holding AG NYSE:ONON reported second-quarter sales below analysts’ expectations on Tuesday, citing weaker wholesale performance. The Swiss sportswear company increased its gross-margin outlook, supported by a greater contribution from direct sales.
Net sales reached CHF 850.3 million, a rise of 13.5% compared to a year ago. Analysts’ forecasts were at CHF 878.16 million, leaving sales 3.2% below estimates.
The miss is important as management prioritized price integrity instead of pushing for more wholesale volume. This decision supported margins, but meant that growth had to come from On’s stores and website.
Direct-to-consumer sales increased by 26.0% to CHF 388.4 million. Wholesale sales were up 4.8% at CHF 461.9 million. The direct channel accounted for 45.7% of total sales, compared to 41.1% in the previous year.
Chief Financial Officer Frank Sluis stated, “We do not compromise our full-price integrity for volume – even in the heavily promotional environment we saw this quarter in some markets.” On’s results release
On’s official release details the figures presented below. Adjusted EBITDA and adjusted EPS refer to non-IFRS metrics. The sales consensus is sourced from Reuters.
| Q2 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Net sales | CHF 850.3m | CHF 749.2m | +13.5% |
| Gross margin | 65.4% | 61.5% | +3.9 pts |
| Adjusted EBITDA | CHF 168.1m | CHF 136.1m | +23.5% |
| Adjusted EBITDA margin | 19.8% | 18.2% | +1.6 pts |
| Adjusted diluted EPS | CHF 0.35 | CHF -0.09 | Returned to profit |
Profit increased at a faster rate than sales. Gross margin improved by 390 basis points, and adjusted EBITDA climbed 23.5%. Adjusted diluted earnings moved to CHF 0.35 per share, reversing a loss.
The channel split accounts for much of the increase. Direct sales deliver higher retail margins, whereas wholesale provides a broader market and reduced distribution expenses. Slower wholesale sell-in was anticipated to keep inventory lean ahead of upcoming product launches.
| Channel | Q2 sales | Reported growth | Constant-currency growth | Sales mix |
|---|---|---|---|---|
| Direct-to-consumer | CHF 388.4m | 26.0% | 34.3% | 45.7% |
| Wholesale | CHF 461.9m | 4.8% | 12.7% | 54.3% |
Channel data is sourced from On’s official release for the second quarter. Direct mix increased by 460 basis points, coming close to the 390-basis-point improvement in gross margin.
The contribution of the Americas to overall growth decreased. Reported sales in the region increased by 4.5%. Constant-currency growth eased to 13.0%, compared with 17.1% in the March quarter.
| Region | Q2 sales | Reported growth | Constant-currency growth |
|---|---|---|---|
| Americas | CHF 451.6m | 4.5% | 13.0% |
| EMEA | CHF 228.2m | 15.4% | 20.5% |
| Asia-Pacific | CHF 170.5m | 43.1% | 54.7% |
Asia-Pacific continued as the fastest-growing area, driven by Japan, South Korea and Greater China. On’s official release reported a 47.7% increase in apparel sales to CHF 54.2 million. Footwear accounted for CHF 781.6 million, representing around 92% of overall sales.
Wall Street sentiment holds steady, although projections vary considerably. An ongoing survey shows 23 analysts with buy recommendations, three with hold, and one with a sell rating. The average price target stands at $51.63.
| Analyst measure | Current reading |
|---|---|
| Number of buy calls | 23 |
| Number of hold calls | 3 |
| Number of sell calls | 1 |
| Mean price target | $51.63 |
| Price target range | $23.93-$82.25 |
On is making progress in a market dominated by Nike, Inc. NYSE:NKE and Adidas AG (ETR:ADS). However, the past quarter highlights constraints on its growth in market share. The Americas continue to represent over half of total sales, but expansion in that region is moderating.
U.S. markets were not open at the time of publication. The S&P 500 rose 3.6% last week before slipping on Monday alongside an increase in oil prices. Investors are watching for July consumer price figures out Wednesday, which may influence rate outlooks for growth stocks.
On now projects constant-currency sales will grow in the low-20% range for 2026. Based on current exchange rates, this suggests revenues between CHF 3.47 billion and CHF 3.56 billion. The midpoint remains nearly the same as the previous guidance of CHF 3.51 billion.
Risks: Expansion in sportswear promotions may lead to increased discounting or even softer wholesale demand. Tariffs continue to add to costs, while the robust Swiss franc may obscure true growth figures. A higher share of direct sales calls for greater investment in stores, logistics and marketing.
The wholesale order book is the first key measure. Persistent weakness in sell-in, combined with slowing direct growth, would leave the 65% margin target providing limited defense against a further sales shortfall.
