On returns to profit with sales increase

On Holding AG has finished the second quarter of the 2026 financial year with an increase in sales. The Swiss sporting goods company also returned to profit after a loss in the same period last year.

The Zurich-based company achieved sales of 850.3 million Swiss francs in the three months to June 30, On announced on Tuesday. This represents a 13.5 percent increase in revenue for the second quarter of 2026 compared to the same period last year, or a 21.6 percent increase on a currency-neutral basis. The growth was primarily driven by the sports shoe specialist's direct-to-consumer channel.

Sales in the direct-to-consumer (D2C) channel rose by 26.0 percent to 388.4 million Swiss francs, a 34.3 percent increase on a currency-neutral basis. Its share of total sales thus reached 45.7 percent, the highest figure On has ever recorded in a second quarter. In the wholesale channel, sales amounted to 461.9 million Swiss francs, up 4.8 percent on the prior-year period, or 12.7 percent on a currency-neutral basis. The company's own stores continue to improve key metrics from an already high level as the company expands its global network of highly profitable premium locations. On recently opened its first stores in São Paulo and Copenhagen.

The company recorded growth in all regions. In Europe, the Middle East and Africa (EMEA), sales increased by 15.4 percent to 228.2 million Swiss francs. In the Americas, they rose by 4.5 percent to 451.6 million Swiss francs, and in Asia-Pacific, they grew by 43.1 percent to 170.5 million Swiss francs. The Asia-Pacific region once again accounted for more than 20 percent of global revenue.

Gross margin increases despite higher US tariffs

The gross margin increased from 61.5 percent to 65.4 percent year-over-year. Higher US import tariffs are fully accounted for in this figure, while any potential customs duty refunds are not. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 23.5 percent to 168.1 million Swiss francs. Ultimately, On achieved a profit of 105 million Swiss francs, after reporting a loss of 40.9 million Swiss francs in the same period last year.

“A currency-neutral growth of 21.6 percent, combined with an industry-leading gross margin of 65.4 percent, demonstrates the structural advantages of an approach focused on innovation and brand desirability,” said chief financial officer Frank Sluis, for whom this was his first quarter at On. “We do not sacrifice our full-price integrity for volume, even in the highly discount-driven environment we have seen in some markets this quarter.”

For the first half of the year, sales reached approximately 1.7 billion Swiss francs. This corresponded to an increase of 14 percent, or 24 percent on a currency-neutral basis. Net profit rose from 15.8 million to 208.3 million Swiss francs.

For the full year, On expects currency-neutral sales growth in the low 20 percent range. At current exchange rates, this would correspond to sales of 3.47 to 3.56 billion Swiss francs. The D2C channel is expected to grow significantly more than wholesale in the second half of the year. The company is deliberately managing wholesale pre-orders to ensure a clean slate for upcoming product launches. On raised its gross margin expectation to at least 65 percent and confirmed its forecast for the adjusted EBITDA margin of 19.5 to 20 percent.