On raises profit forecast after record quarter

Swiss sportswear provider On Holding AG (On) has continued its growth trajectory in the first quarter of the 2026 financial year. On Tuesday, the company announced record sales and raised its profit forecast.

In the period from January to March, sales amounted to 831.9 million Swiss francs (1,065.3 million dollars). This represents an increase of 14.5 percent compared to the same quarter last year. Adjusted for currency fluctuations, revenue grew by 26.4 percent.

In its direct-to-consumer business, sales rose by 16.4 percent (currency-adjusted +28.7 percent) to 322.3 million Swiss francs. In the wholesale business, On achieved an increase of 13.3 percent (currency-adjusted +25.1 percent) to 509.6 million Swiss francs.

Revenue from clothing and accessories continues to see above-average growth

Revenue in the traditional core business of footwear grew by 12.2 percent (currency-adjusted +24.0 percent) to 763.7 million Swiss francs.

Other categories, a strategic priority for the company's expansion, developed even more dynamically. Sales of apparel increased by 45.1 percent (currency-adjusted +57.5 percent) to 55.3 million Swiss francs. Revenue from accessories rose by 70.7 percent (currency-adjusted +86.6 percent) to 12.9 million Swiss francs.

Currency effects slow sales growth

The strongest growth driver was the Asia-Pacific region, with a sales increase of 44.4 percent (currency-adjusted +61.4 percent) to 174 million Swiss francs. According to the company, the significant increase was primarily due to strong growth in China and South Korea.

In the Americas, revenue increased by 3.1 percent (currency-adjusted +17.1 percent) to 450.7 million Swiss francs. In the EMEA region, which includes Europe, the Middle East and Africa, sales increased by 22.8 percent (currency-adjusted +25.6 percent) to 207.1 million Swiss francs.

The company was able to increase its gross margin to 64.2 percent from 59.9 percent in the same quarter last year, despite higher import duties in the US. As a result, earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, grew by 45.4 percent to 174.3 million Swiss francs. Reported net profit increased by 82.2 percent to 103.3 million Swiss francs.

Management raises earnings forecast after “outstanding start”

Co-founder and co-CEO Caspar Coppetti was pleased with the current results. “The first quarter was an outstanding start to the year and further impressive proof of the success of our premium strategy,” he explained in a statement. “On is becoming more global, more diverse and more deeply rooted in different communities around the world.”

Following the successful first quarter, management updated its forecast for 2026. Sales for the current year are still expected to increase by at least 23 percent on a currency-adjusted basis. Based on current exchange rates, this would amount to at least 3.51 billion Swiss francs.

The annual forecast for the adjusted EBITDA margin, which was previously between 18.5 and 19.0 percent, has been raised to between 19.5 and 20.0 percent in light of recent performance.

This article was translated to English using an AI tool.

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