NEW YORK, August 12, 2026, 06:12 EDT — U.S. equity markets are closed; premarket trading is underway.
- On shares closed 20.3% lower after second-quarter sales missed estimates.
- Americas growth slowed, while Asia-Pacific and direct sales stayed strong.
- Higher margin guidance did not offset the weaker revenue mix.
On Holding AG NYSE:ONON fell $7.87 to $30.91 on Tuesday. The 20.3% slide was its worst on record. Shares touched a 52-week low after quarterly sales missed expectations.
The selloff exposed a sharper investor concern. On is protecting premium prices, but its largest market is slowing. The Americas supplies more than half of revenue.
Second-quarter sales reached CHF850.3 million, up 13.5% from a year earlier. Analysts expected CHF878.2 million. Adjusted earnings were CHF0.35 per share, one cent above consensus.
| Q2 metric | Reported | Comparison | Investor signal |
|---|---|---|---|
| Net sales | CHF850.3m | CHF878.2m consensus | 3.2% miss |
| Adjusted EPS | CHF0.35 | CHF0.34 consensus | Small beat |
| Americas growth | 13% constant currency | 17% in Q1 | Slower core market |
| Asia-Pacific growth | 54.7% constant currency | Not disclosed here | Diversification remains strong |
The mix matters more than the headline increase. Direct-to-consumer sales grew about 34%. Wholesale growth slowed to 12.7% from 25.1% in the prior quarter.
Management deliberately held back wholesale shipments in a promotional market. CFO Frank Sluis said the choice protects channel inventory and full-price integrity. It also costs near-term volume.
| Channel or region | Latest growth | Prior-quarter reference | Read-through |
|---|---|---|---|
| Direct-to-consumer | About 34% | Not disclosed here | Higher-margin channel leads |
| Wholesale | 12.7% | 25.1% | Sharp sequential slowdown |
| Americas | 13% | 17% | Demand test in largest region |
| Asia-Pacific | 54.7% | Not disclosed here | Fastest regional growth |
On raised its full-year gross-margin floor to 65% from 64.5%. Yet it widened sales guidance to CHF3.47 billion through CHF3.56 billion. The previous target was about CHF3.51 billion.
That trade-off is deliberate. “We are not sprinting for short-term volume,” co-CEO David Allemann said. He described the goal as building a premium brand over decades. Reuters
| Company | Ticker | Aug. 4 close | Aug. 11 close | Change |
|---|---|---|---|---|
| On Holding | NYSE:ONON | $37.61 | $30.91 | -17.8% |
| Nike | NYSE:NKE | $41.53 | $41.32 | -0.5% |
| Deckers Outdoor | NYSE:DECK | $99.87 | $93.84 | -6.0% |
Last week’s relative performance shows the reset. On dropped much faster than Nike NYSE:NKE and Deckers Outdoor NYSE:DECK. The market punished the revenue miss, not the category alone.
Wall Street remains divided. Current Google Finance data shows 15 buy ratings, two holds and one sell. The average target is $49.12, but the range spans $20 to $83.
| Analyst | Firm | Recommendation | Target | Date |
|---|---|---|---|---|
| Richard Edwards | Goldman Sachs | Buy, maintained | $42 | Aug. 12 |
| Joseph Civello | Truist Financial | Buy, reiterated | $40 | Aug. 11 |
| Dylan Carden | William Blair | Hold, downgraded | Not stated | Aug. 11 |
| Consensus | 18 analysts | 15 buy / 2 hold / 1 sell | $49.12 average | Current |
Jefferies analyst Randal Konik warned that margin gains may fade. Slower growth and high inventories could drive estimate cuts, he said. That is the main challenge to On’s premium thesis.
The coming sessions will test whether Tuesday’s low attracts buyers. Investors should watch Americas orders, wholesale inventory and any further target changes. A move above $31 in premarket trading offers only an early signal.
| Near-term watch | Current reference | Why it matters |
|---|---|---|
| Premarket price | $31.31 at 06:06 EDT | Tests stabilization after record drop |
| 52-week low | $30.11 | Immediate downside reference |
| Full-year sales | CHF3.47bn–CHF3.56bn | Defines the growth reset |
| Gross-margin floor | At least 65% | Measures premium-price defense |
Risks: A weaker U.S. consumer could deepen the Americas slowdown. More promotions by rivals may pressure sell-through or force discounting. Conversely, stronger direct sales and Asia-Pacific demand could preserve margins above current expectations.
