WS Investor
12 May 2026, 17:02
On Holding Slips 2.9% Despite Record Quarter, Currency Headwinds and Tariffs Weigh
May 12, 2026 | NYSE: ONON
On Holding delivered a genuinely impressive first quarter by almost any operational measure, yet shares are down 2.9% today — a reminder that in a market already under pressure from inflation and a strong dollar, even strong results can disappoint when the headline numbers are clouded by currency effects.
Reported net sales reached CHF 831.9 million, up 14.5% year-on-year and the first time On has crossed CHF 800 million in a single quarter. On a constant currency basis, however, the picture is considerably brighter at 26.4% growth — the gap reflecting meaningful Swiss franc strength against the currencies in which On earns much of its revenue, particularly the US dollar.
The quality of the quarter is hard to argue with. Gross profit margin expanded 430 basis points to 64.2%, a record, achieved despite the headwind of higher US tariffs on Vietnam-sourced products. Adjusted EBITDA margin reached 21.0%, up from 16.5% a year ago. Net income jumped 82.2% to CHF 103.3 million, with net income margin rising to 12.4% from 7.8%.
Geographically, Asia-Pacific was the standout, growing 44.4% reported and 61.4% on a constant currency basis, now representing over 20% of global sales. Apparel continued its rapid ascent, up 45.1% reported and 57.5% in constant currency, reinforcing On's evolution beyond footwear. Both DTC and wholesale channels grew double digits.
On reiterated its full-year constant currency net sales growth guidance of at least 23% and raised its gross profit margin outlook to at least 64.5% and adjusted EBITDA margin guidance to 19.5% to 20.0% — a confident stance given the uncertain macro backdrop.
Today's dip likely reflects a combination of currency translation concerns, ongoing tariff uncertainty, and the broader market selloff rather than any fundamental weakness in the business. The underlying momentum here remains intact.
May 12, 2026 | NYSE: ONON
On Holding delivered a genuinely impressive first quarter by almost any operational measure, yet shares are down 2.9% today — a reminder that in a market already under pressure from inflation and a strong dollar, even strong results can disappoint when the headline numbers are clouded by currency effects.
Reported net sales reached CHF 831.9 million, up 14.5% year-on-year and the first time On has crossed CHF 800 million in a single quarter. On a constant currency basis, however, the picture is considerably brighter at 26.4% growth — the gap reflecting meaningful Swiss franc strength against the currencies in which On earns much of its revenue, particularly the US dollar.
The quality of the quarter is hard to argue with. Gross profit margin expanded 430 basis points to 64.2%, a record, achieved despite the headwind of higher US tariffs on Vietnam-sourced products. Adjusted EBITDA margin reached 21.0%, up from 16.5% a year ago. Net income jumped 82.2% to CHF 103.3 million, with net income margin rising to 12.4% from 7.8%.
Geographically, Asia-Pacific was the standout, growing 44.4% reported and 61.4% on a constant currency basis, now representing over 20% of global sales. Apparel continued its rapid ascent, up 45.1% reported and 57.5% in constant currency, reinforcing On's evolution beyond footwear. Both DTC and wholesale channels grew double digits.
On reiterated its full-year constant currency net sales growth guidance of at least 23% and raised its gross profit margin outlook to at least 64.5% and adjusted EBITDA margin guidance to 19.5% to 20.0% — a confident stance given the uncertain macro backdrop.
Today's dip likely reflects a combination of currency translation concerns, ongoing tariff uncertainty, and the broader market selloff rather than any fundamental weakness in the business. The underlying momentum here remains intact.
