#On Holding Reports Q1 2026 Earnings and Leadership Change
On Holding AG (NYSE: ONON) reported first quarter 2026 net sales of CHF 831.9 million on May 12, marking the first quarter the Zurich-based sportswear company has exceeded CHF 800 million in quarterly net sales. Reported net sales rose 14.5% year-over-year and 26.4% on a constant currency basis, according to the company's earnings release.
The result was accompanied by a leadership change. Outgoing CEO and CFO Martin Hoffmann is handing leadership to founders Caspar Coppetti and David Allemann as Co-CEOs, with Frank Sluis taking the CFO role. On's IPO took place in 2021, and net sales have more than quadrupled since.
#On Posts First Quarter Above CHF 800 Million in Net Sales
Wholesale net sales reached CHF 509.6 million, up 13.3% reported and 25.1% on a constant currency basis. Direct-to-consumer net sales rose 16.4% to CHF 322.3 million, or 28.7% on a constant currency basis.
By region, Asia-Pacific grew 44.4% to CHF 174.0 million, or 61.4% on a constant currency basis, and accounted for more than 20% of global net sales. The company said momentum was concentrated in China and South Korea. EMEA net sales rose 22.8% to CHF 207.1 million, and the Americas grew 3.1% to CHF 450.7 million, or 17.1% in constant currency.
Apparel net sales rose 45.1% to CHF 55.3 million, or 57.5% in constant currency. Accessories grew 70.7% to CHF 12.9 million, while shoes, which remain the largest category, rose 12.2% to CHF 763.7 million.
#Gross Profit Margin Reaches 64.2% Despite U.S. Tariff Headwinds
Gross profit margin reached 64.2%, up 430 basis points year-over-year, which the company attributed to full-price discipline and operational execution, and described as achieved despite higher U.S. tariffs. Net income rose 82.2% to CHF 103.3 million, with net income margin at 12.4% compared with 7.8% in the prior-year quarter.
Adjusted EBITDA margin, a non-IFRS measure, increased to 21.0% from 16.5%. Basic and diluted earnings per share for Class A shares rose to CHF 0.31 from CHF 0.17. Cash and cash equivalents stood at CHF 1,020.4 million at quarter-end, broadly flat with year-end 2025.
"These results show the quality of On's growth and the strength of the financial foundation we have built," Hoffmann, outgoing CEO and CFO of On, said in the earnings release. "Since our IPO nearly five years ago, we have more than quadrupled our net sales, strengthened our premium positioning and built a financial profile that reflects the incredible ambition of the brand."
#On Raises Full-Year Gross Margin Guidance
On reiterated its full-year 2026 constant currency net sales growth guidance of at least 23%, which the company said implies reported net sales of at least CHF 3.51 billion at current spot rates. The company raised its full-year gross profit margin outlook to at least 64.5%, and guided to an adjusted EBITDA margin of 19.5% to 20.0%.
On said the gross margin outlook embeds a 20% incremental tariff rate on products imported to the United States from Vietnam and excludes any potential tariff refunds. The company expects DTC, Asia-Pacific and apparel to outperform within the full-year guidance.
On competes in the global performance and lifestyle athletic footwear category, where the largest operators are Nike, Adidas and Puma. The company said it is present in more than 90 countries and is opening own-retail locations in Stockholm, São Paulo and Sydney.
The outlook is subject to risks the company identified in its filings, including consumer demand for premium footwear and apparel, supply chain conditions, foreign exchange movements, and U.S. trade policy. On's guidance is provided on a non-IFRS basis for adjusted EBITDA margin, and the company did not provide a reconciliation to forward-looking IFRS net income.
Management projected at least 23% constant currency net sales growth for the full year and a gross profit margin of at least 64.5%, though U.S. tariff policy, macroeconomic conditions, and execution against the company's retail expansion plans remain key risks to the outlook.