ONON shares were down sharply as second quarter sales fell short of analysts’ estimates. On also provided soft sales guidance for the year while implying it’s holding off from discounting older shoe models ahead of product updates in the highly promotional U.S. market. Still, On Holding AG reported Adjusted EBITDA rose 23.5 percent in the second quarter as sales on a currency-neutral basis climbed 21.6 percent.

On reports its results in Swiss Francs (CHF).

On’s EPS in the quarter was CHF 0.31, beating the analyst consensus estimate of CHF 0.29. Revenue totaled CHF 850.3 million, missing the CHF 881.4 million consensus estimate.

For the year, On now expects sales to climb in the low-20 percent range on a constant-currency basis. At current spot rates, this implies absolute net sales of CHF 3.47 billion to CHF 3.56 billion. Previously, On expected to grow by at least 23 percent year-over-year on a constant currency basis, with reported net sales of at least CHF 3.51 billion. On maintained its earnings guidance for the year, calling for adjusted EBITDA margin in the range 19.5 percent to 20.0 percent. On raised its expectations for gross margins to at least 65.0 percent, up from at least 64.5 percent, to offset the sales shortfall.

ONON shares opened down ~20 percent on the New York Stock Exchange on Tuesday morning, August 11.

Key Financial and Operating Metrics
Key financial and operating metrics for the three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025 include:

  • net sales increased by 13.5 percent to CHF 850.3 million, or by 21.6 percent on a constant currency basis;
  • net sales through the direct-to-consumer (DTC) sales channel increased by 26.0 percent to CHF 388.4 million, or by 34.3 percent on a constant currency basis;
  • net sales through the wholesale sales channel increased by 4.8 percent to CHF 461.9 million, or by 12.7 percent on a constant currency basis;
  • net sales in Europe, Middle East and Africa (EMEA), Americas and Asia-Pacific increased by 15.4 percent to CHF 228.2 million, 4.5 percent to CHF 451.6 million and 43.1 percent to CHF 170.5 million, respectively;
  • net sales in EMEA, Americas, and Asia-Pacific increased by 20.5 percent, 13.0 percent and 54.7 percent on a constant currency basis, respectively;
  • net sales from shoes, apparel and accessories increased by 10.9 percent to CHF 781.6 million, 47.7 percent to CHF 54.2 million and 88.3 percent to CHF 14.5 million, respectively;
  • net sales from shoes, apparel and accessories increased by 18.9 percent, 56.2 percent, and 102.2 percent on a constant currency basis, respectively;
  • gross profit increased by 20.6 percent to CHF 555.7 million from CHF 460.8 million;
  • gross profit margin increased to 65.4 percent from 61.5 percent;
  • net income / (loss) increased by 356.5 percent to CHF 105.0 million from CHF (40.9) million;
  • net income / (loss) margin increased to 12.3 percent from (5.5) percent;
  • basic earnings per share (EPS) Class A (CHF) increased to 0.31 from (0.12);
  • diluted EPS Class A (CHF) increased to 0.31 from (0.12);
  • adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) increased by 23.5 percent to CHF 168.1 million from CHF 136.1 million;
  • adjusted EBITDA margin increased to 19.8 percent from 18.2 percent;
  • adjusted net income / (loss) increased to CHF 117.6 million from CHF (29.7) million;
  • adjusted basic EPS Class A (CHF) increased to 0.35 from (0.09); and
  • adjusted diluted EPS Class A (CHF) increased to 0.35 from (0.09).

Key financial and operating metrics for the six-month period ended June 30, 2026 compared to the six-month period ended June 30, 2025 include:

  • net sales increased by 14.0 percent to CHF 1,682.2 million; or by 24.0 percent on a constant currency basis;
  • net sales through the DTC sales channel increased by 21.4 percent to CHF 710.7 million, or by 31.6 percent on a constant currency basis;
  • net sales through the wholesale sales channel increased by 9.1 percent to CHF 971.5 million, or by 19.0 percent on constant currency basis;
  • net sales in EMEA, Americas and Asia-Pacific increased by 18.8 percent to CHF 435.4 million, 3.8 percent to CHF 902.3 million and 43.7 percent to CHF 344.5 million, respectively;
  • net sales in EMEA, Americas, and Asia-Pacific increased by 22.8 percent, 15.0 percent and 58.1 percent on a constant currency basis, respectively;
  • net sales from shoes, apparel and accessories increased by 11.5 percent to CHF 1,545.3 million, 46.4 percent to CHF 109.5 million and 80.3 percent to CHF 27.4 million, respectively;
  • net sales from shoes, apparel and accessories increased by 21.4 percent, 56.9 percent, and 94.4 percent on a constant currency basis, respectively;
  • gross profit increased by 21.6 percent to CHF 1,090.0 million from CHF 896.1 million;
  • gross profit margin increased to 64.8 percent from 60.7 percent;
  • net income increased by 1221.5 percent to CHF 208.3 million from CHF 15.8 million;
  • net income margin increased to 12.4 percent from 1.1 percent;
  • basic EPS Class A (CHF) increased to 0.63 from 0.05;
  • diluted EPS Class A (CHF) increased to 0.62 from 0.05;
  • adjusted EBITDA increased by 33.7 percent to CHF 342.3 million from CHF 256.1 million;
  • adjusted EBITDA margin increased to 20.3 percent from 17.4 percent;
  • adjusted net income increased to CHF 241.1 million from CHF 40.9 million;
  • adjusted basic EPS Class A (CHF) increased to 0.72 from 0.12; and
  • adjusted diluted EPS Class A (CHF) increased to 0.72 from 0.12.

Key financial and operating metrics as of June 30, 2026 compared to December 31, 2025 included cash and cash equivalents increased by 18 percent to CHF 1,205.6 million from CHF 1,019.9 million; and net working capital increased by 11.5 percent to CHF 635.9 million from CHF 570.3 million.

Outlook
On said, “Following a very strong first half of 2026, On approaches the second half of the year with discipline and commitment to its premium growth model. While DTC momentum remains highly encouraging, On is deliberately managing wholesale sell-in to protect full-price integrity in a promotional marketplace, ensuring a clean runway for On’s upcoming breakthrough innovations leading into 2027. Reflecting this disciplined approach, and excluding any benefits from anticipated tariff refunds in the second half of the year, On expects the following for full-year 2026:

  • Net Sales: Expected to grow in the low-20 percent range on a constant currency basis, with the DTC channel expected to strongly outperform wholesale in the second half of the year. At current spot rates, this implies absolute net sales of CHF 3.47 billion to CHF 3.56 billion.
  • Gross profit margin: Expected to be at least 65.0 percent, demonstrating the strength of and commitment to On’s premium operating model and the highly favorable DTC mix.
  • Adjusted EBITDA margin: As On continues to pursue high-quality growth and keeps investing in its future, adjusted EBITDA margin is expected in the range 19.5 percent to 20.0 percent.

Image courtesy On Holding