ONON stock drops 14.20% pre-market after closing the previous session 3% higher
On Holding Q2 sales climb 13.5% as gross margin expands sharply to 65.4% overall
Direct-to-consumer sales rise 26% as On Holding strengthens its premium growth
Asia-Pacific sales jump 43.1% while apparel and accessories growth accelerates
On Holding keeps EBITDA margin guidance at 19.5% to 20% for full-year 2026 outlook
On Holding (ONON) stock closed at $38.78, up 3%, after quarterly results showed higher sales, stronger profit, and wider margins. ONON shares dropped 14.20% to $33.30 in pre-market trading, sharply reversing the stock’s gain from the prior session. The sportswear company expanded revenue across every region, while direct-to-consumer sales and higher-margin operations strengthened its overall quarterly financial performance.
On Holding reported second-quarter net sales of CHF 850.3 million, representing a 13.5% increase from the previous year. On a constant-currency basis, quarterly sales grew 21.6%, highlighting stronger underlying expansion despite unfavorable foreign-exchange effects throughout the reported period. Direct-to-consumer revenue rose 26% to CHF 388.4 million, while wholesale revenue increased 4.8% to CHF 461.9 million during Q2 2026.
EMEA sales increased 15.4% to CHF 228.2 million, as demand continued across the company’s major European markets during Q2. Meanwhile, Americas revenue rose 4.5% to CHF 451.6 million, while Asia-Pacific sales jumped 43.1% to CHF 170.5 million in Q2. Constant-currency growth reached 20.5% in EMEA, 13% in the Americas, and 54.7% across Asia-Pacific markets during the quarter.
Shoes remained On Holding’s largest business, with quarterly sales rising 10.9% to CHF 781.6 million from last year in Q2. Apparel sales climbed 47.7% to CHF 54.2 million, while accessories revenue surged 88.3% to CHF 14.5 million during the quarter. Those gains broadened the company’s product mix beyond footwear and supported its strategy of building a larger premium sportswear platform.
Gross profit increased 20.6% to CHF 555.7 million, while the gross profit margin expanded to 65.4% from 61.5%. Net income reached CHF 105 million, versus a CHF 40.9 million loss during the comparable quarter last year. Adjusted EBITDA increased 23.5% to CHF 168.1 million, while its margin improved to 19.8% from 18.2% during Q2.
For the first six months, net sales increased 14% to CHF 1.68 billion compared with the same 2025 period overall. Constant-currency sales grew 24%, while adjusted EBITDA advanced 33.7% to CHF 342.3 million during the six-month reporting period. Six-month net income reached CHF 208.3 million, up sharply from CHF 15.8 million one year earlier in 2025.
On Holding ended June with CHF 1.21 billion in cash, representing an 18% increase from the end of 2025. Management expects full-year constant-currency sales growth in the low-20% range and raised gross margin guidance to at least 65%. The company maintained adjusted EBITDA margin guidance between 19.5% and 20%, reinforcing its focus on premium growth and profitability.
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