Swiss sneaker maker On Holding slides 11% in premarket trading despite projecting another year of strong growth and reporting record sales and better profitability for 2025.
The Zurich-based brand, known for premium-priced athletic footwear and apparel, posted fourth-quarter net sales of 743.8 million Swiss francs ($946 million), up 30.6% in constant currencies and above LSEG estimates of 723.5 million francs.
For the full year, sales topped 3 billion francs for the first time, edging out expectations of 2.99 billion francs.
For 2026, On expects net sales to grow at least 23% in constant currencies. At current exchange rates, that implies sales of at least 3.44 billion francs, though sell-side consensus had anticipated around 3.7 billion francs. The company projects an adjusted EBITDA margin of 18.5%–19%.
Shares were flat year-to-date ahead of Tuesday’s session.
On is in the final year of a three-year plan to double sales to 3.55 billion francs and lift EBITDA margin to at least 18% by 2026, aiming to become the leading premium global sportswear brand.
Since going public in 2021 on the New York Stock Exchange, On has gained market share from legacy players like Nike and Adidas through innovative products and a focus on performance footwear and apparel.
“We are witnessing a fundamental shift in society as people worldwide swap traditional status markers for a commitment to health, longevity, and performance,” said co-founder and executive chair David Allemann. “On is uniquely positioned to deliver what this discerning consumer demands.”
Profitability also reached new highs for the year, the company noted.
In the quarter, adjusted EBITDA rose 31.8% to 131 million francs, a margin of 18.8%, beating LSEG estimates of 112.4 million francs. The improvement was attributed to operational efficiencies and the strength of the brand’s positioning.
Asia-Pacific stood out, with sales in the region up 85.1% at constant currencies. The Americas and EMEA grew 21.3% and 27.5%, respectively, in the December quarter.
CEO Martin Hoffmann said, “The strength of our premium strategy lets us exceed our ambitious targets while enabling reinvestment in high-return areas that should fuel growth for years to come.”
In the previously reported quarter, On surprised investors by lifting guidance for the third consecutive time while beating expectations on both revenue and earnings, sending the stock higher. The company also said it would refrain from offering discounts during the shopping season to maintain its premium image.
Stocks have mostly traded flat year-to-date, with some analysts warning that 2026 may bring headwinds, and questioning whether the current valuation fully reflects those risks.
Jefferies analyst Randal Konik, who has an Underperform rating, noted in February that in a tougher pricing environment with rising competitive intensity, premium positioning alone may not sustain price-led growth without risking demand or higher promotional activity.
CNBC reporters contributed."
