On reports record revenue in third quarter

Swiss sportswear company On Holding AG (On) has set another revenue record and significantly increased its profit in the third quarter of the 2026 financial year. Following the latest results, management confirmed its existing full-year guidance on Tuesday.

Between July and September, revenue reached 931.4 million Swiss francs (1.135 billion dollars), surpassing the prior-year quarter by 17.2 percent. At constant currency, sales grew by 17.8 percent. According to the company, this marks the first time it has generated more than 900 million Swiss francs in a single quarter.

Growth was driven by the company's own retail channel, which rose by 25 percent (+24.8 percent at constant currency) to 393.3 million Swiss francs. Wholesale revenue increased by 12.2 percent (+13.2 percent at constant currency) to 538.2 million Swiss francs.

Apparel and accessories sales continue above-average growth

In the core footwear business, revenue rose by 15.4 percent (+16 percent at constant currency) to 843.7 million Swiss francs. Other categories developed even more dynamically. Apparel sales grew by 38.7 percent (+38 percent at constant currency) to 69.5 million Swiss francs, while accessories increased by 39.2 percent (+40.2 percent at constant currency) to 18.1 million Swiss francs.

All market regions contributed to the revenue growth. On achieved the highest growth rate in the Asia-Pacific region, recording an increase of 31.1 percent (+31.9 percent at constant currency) to 189.9 million Swiss francs. In the Americas, sales rose by 12.4 percent (+12.4 percent at constant currency) to 490.1 million Swiss francs. In the EMEA region, which comprises Europe, the Middle East and Africa, revenue increased by 17.9 percent (+19.1 percent at constant currency) to 251.4 million Swiss francs.

Record gross margin boosts earnings

Driven in part by duty drawbacks in the US, the gross margin grew from 65.7 percent in the prior-year quarter to 72.6 percent, reaching a new high in the company's history. Adjusted for special items, the company stated that the margin rose by approximately 320 basis points despite a promotional market environment.

Consequently, the sportswear brand was also able to significantly increase its profit. Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, rose by 42.7 percent to 256.8 million Swiss francs. Reported net profit grew by 36.9 percent to 162.8 million Swiss francs.

In the first nine months of the current year, revenue increased by 15.1 percent (+21.8 percent at constant currency) to 2.61 billion Swiss francs. Net profit reached 371 million Swiss francs. This figure was more than double that of the prior-year period, when it stood at 134.6 million Swiss francs.

Full-year guidance remains largely unchanged

The latest figures gave management no reason to significantly alter its forecasts for the full financial year. The company continues to expect currency-neutral revenue growth in the low-20 percent range and an EBITDA margin, adjusted for special items and duty drawbacks, of between 19.5 and 20 percent.

The company expressed slightly more optimism regarding its gross margin. Having previously anticipated a figure of at least 65 percent, the sportswear specialist now expects approximately 67.5 percent. Adjusted for duty drawbacks, a margin of 66 percent is projected.