Key Takeaways:
On Holding AG (NYSE: ONON) reported first-quarter net sales of $1.07 billion, beating analyst estimates and reaffirming its full-year growth outlook as demand for its premium footwear and apparel remains strong.
“We couldn't have a better start to the year,” co-CEO Caspar Coppetti said in an interview with Yahoo Finance. “What we're seeing is our premium strategy really working.”
The Swiss sportswear company exceeded expectations on both the top and bottom lines. The results come as a positive signal for the company in its first earnings report under the new co-CEO leadership of founders Caspar Coppetti and David Allemann.
Shares of On Holding had underperformed heading into the report, down roughly 27 percent year-to-date. The company’s stock had previously faced pressure from a lower-than-expected 2026 revenue forecast, the departure of its former CEO, and concerns over potential US tariff policies on products made in Vietnam.
The company’s direct-to-consumer (DTC) business continues to be a significant growth driver, a trend highlighted in its 2025 results where DTC sales grew by nearly 40 percent. In the first quarter, strong performance in its apparel and accessories segments also contributed to the top-line beat, demonstrating successful expansion beyond its core footwear offerings. This strategy is similar to that of competitors like Lululemon, and contrasts with the lower gross margins of peers such as Nike and Deckers Outdoor, the parent company of Hoka.
On Holding raised its profitability guidance for the full year. Management now expects its adjusted EBITDA margin to be in the range of 19.5 percent to 20.0 percent, up from a previous forecast of 18.5 percent to 19.0 percent. The gross profit margin target was also lifted to at least 64.5 percent.
The strong quarterly performance and upwardly revised profit guidance suggest that management is confident in its ability to navigate macroeconomic pressures and execute on its premium brand strategy. Investors will be watching to see if the momentum can be sustained and if the company can continue to mitigate supply chain risks.
This article is for informational purposes only and does not constitute investment advice.
