On Holding lifts 2026 outlook amid tariff shift

On Holding AG reported record full-year 2025 results, with net sales rising 30.0% year over year to CHF 3,014.0 million and surpassing CHF 3.0 billion for the first time. On a constant-currency basis, net sales grew 35.6%. The company highlighted increasing global brand awareness and disciplined premium execution as key drivers.

Fourth quarter 2025 net sales reached CHF 743.8 million, up 22.6% on a reported basis and 30.6% at constant exchange rates. This exceeded analysts’ average estimate of CHF 724.3 million, according to LSEG data. Limited discounting during the holiday season supported performance across both direct-to-consumer and wholesale channels.

Gross profit for 2025 grew 34.7% to CHF 1,893.6 million, with the full-year gross margin expanding to 62.8% from 60.6%. In the fourth quarter, gross margin reached 63.9%, a Q4 record and 180 basis points higher year over year, driven by operational efficiencies, strong full-price execution and favorable foreign exchange.

On’s adjusted EBITDA increased 46.3% in 2025 to CHF 567.0 million, lifting the adjusted EBITDA margin to 18.8% from 16.7%. In the fourth quarter, adjusted EBITDA rose 31.8% to CHF 131.0 million, with margin improving to 17.6% from 16.4%.

Despite higher sales and operating profitability, reported net income for 2025 declined 15.9% to CHF 203.7 million, and net income margin fell to 6.8% from 10.4%. For the fourth quarter, net income decreased 22.9% to CHF 69.1 million, with margin down to 9.3% from 14.8%. Basic Class A EPS for 2025 slipped to CHF 0.62 from CHF 0.75.

Cash and cash equivalents increased 10.3% to CHF 1,019.9 million at year-end 2025, while net working capital rose 14.3% to CHF 570.3 million. The company noted continued disciplined reinvestment into brand building, innovation, technology and retail expansion.

Execution against strategic priorities delivered broad-based growth across channels, regions and categories. Direct-to-consumer net sales rose 33.7% to CHF 1,260.5 million in 2025, while wholesale sales increased 27.5% to CHF 1,753.4 million. Both channels grew faster on a constant-currency basis.

By region, 2025 net sales grew 17.6% in the Americas to CHF 1,740.1 million, 32.0% in EMEA to CHF 762.7 million and 96.4% in Asia-Pacific to CHF 511.1 million. The Asia-Pacific region surpassed CHF 500 million in annual net sales, reflecting what the company described as exceptional demand across markets and channels.

Shoes remain the core business, with 2025 shoe net sales up 27.5% to CHF 2,804.4 million. Apparel and accessories expanded faster, with apparel up 68.2% to CHF 169.9 million and accessories up 124.1% to CHF 39.6 million. Apparel and accessories together accounted for 7.0% of net sales, up 190 basis points year over year.

Looking into 2026, On expects net sales to grow by at least 23% on a constant-currency basis, implying reported net sales of at least CHF 3.44 billion at current spot rates. The company guides for a full-year gross margin of at least 63.0% and an adjusted EBITDA margin between 18.5% and 19.0%.

CEO Martin Hoffmann said On sees potential benefit from lower U.S. tariff rates after the Supreme Court struck down emergency levies. The United States, its largest market, began collecting a new temporary 10% blanket tariff on imports last week, with plans to raise it to 15%, below the additional 20% duty imposed last year on countries including Vietnam and Indonesia, key sourcing hubs for On.

Hoffmann stated that if a 15% rate becomes the new reality, it would represent upside to current guidance, which does not yet factor in lower U.S. tariffs. He added that On has filed for tariff refunds and that any proceeds would be reinvested in the business rather than passed on to consumers.

Hoffmann pointed to a strong product pipeline, innovation and a premium positioning focused on affluent shoppers as supporting global momentum. The brand plans 10 to 15 new store openings in 2026, building on a network of nearly 70 own retail locations at the end of 2025. On shares were down about 11% in premarket trading amid broader market declines.