WS Investor
10 Nov 2026, 15:39
On Holding Falls 8% Despite Record Q3 Sales as Outlook Fails to Match Strong Quarterly Momentum
On Holding (NYSE: ONON) shares fell about 8% on Tuesday despite reporting record third-quarter sales, sharply higher margins and strong growth across regions and channels.
Third-quarter net sales rose 17.2% year over year to a record CHF 931.4 million, or 17.8% on a constant-currency basis. Direct-to-consumer sales increased 25% to CHF 393.3 million, while apparel revenue jumped 38.7%.
Profitability also improved significantly. Gross margin reached 72.6%, up from 65.7%, while adjusted EBITDA increased 42.7% to CHF 256.8 million and adjusted EBITDA margin expanded to 27.6%. Even excluding CHF 52.6 million of U.S. tariff refunds, gross margin was 66.9% and adjusted EBITDA margin was 21.9%.
The main pressure point appears to be the outlook. On reiterated full-year constant-currency sales growth in the low-20% range rather than raising it, while adjusted EBITDA margin guidance excluding tariff refunds remained unchanged at 19.5%-20.0%. The company did raise its underlying gross-margin outlook to about 66% from at least 65%.
The 8% decline therefore appears to reflect elevated expectations heading into the report and disappointment that full-year sales and underlying EBITDA-margin guidance were not increased despite a strong quarter, rather than deterioration in the core business.
On Holding (NYSE: ONON) shares fell about 8% on Tuesday despite reporting record third-quarter sales, sharply higher margins and strong growth across regions and channels.
Third-quarter net sales rose 17.2% year over year to a record CHF 931.4 million, or 17.8% on a constant-currency basis. Direct-to-consumer sales increased 25% to CHF 393.3 million, while apparel revenue jumped 38.7%.
Profitability also improved significantly. Gross margin reached 72.6%, up from 65.7%, while adjusted EBITDA increased 42.7% to CHF 256.8 million and adjusted EBITDA margin expanded to 27.6%. Even excluding CHF 52.6 million of U.S. tariff refunds, gross margin was 66.9% and adjusted EBITDA margin was 21.9%.
The main pressure point appears to be the outlook. On reiterated full-year constant-currency sales growth in the low-20% range rather than raising it, while adjusted EBITDA margin guidance excluding tariff refunds remained unchanged at 19.5%-20.0%. The company did raise its underlying gross-margin outlook to about 66% from at least 65%.
The 8% decline therefore appears to reflect elevated expectations heading into the report and disappointment that full-year sales and underlying EBITDA-margin guidance were not increased despite a strong quarter, rather than deterioration in the core business.
