On Holding stock dropped more than 13% in U.S. premarket trading on Monday after the Swiss sportswear company posted Q2 revenue that fell short of Wall Street expectations.
Revenue rose 21.6% on a constant currency basis to CHF 850.3 million. That missed the analyst consensus of CHF 881.4 million.
On the earnings side, EPS came in at CHF 0.31, topping the CHF 0.29 estimate. So it was a mixed bag.
On Holding $ONON Reports Q2 2026 Earnings Highlights – August 11, 2026
🔹 On Holding $ONON revenue came in at CHF 850.3 million, missing estimates of CHF 878 million but up 13.5% YoY.
🔹 Adjusted EPS was CHF 0.35, slightly above the CHF 0.34 estimate.
🔹 Gross Margin…
— Markets Today (@marketsday) August 11, 2026
Despite the top-line miss, profitability held up well. Gross profit margin reached 65.4%, up 3.9 percentage points year-over-year. The company said this was achieved even after fully absorbing higher U.S. import tariffs, with no tariff refunds included.
Adjusted EBITDA came in at CHF 168.1 million, with the margin rising to 19.8% from 18.2% a year earlier.
The direct-to-consumer channel was a clear bright spot. DTC grew 34.3% on a constant currency basis and beat expectations across every region.
Apparel net sales surged 56.2% on a constant currency basis, continuing to grow faster than footwear.
Asia-Pacific contributed more than 20% of global net sales, with momentum in Japan, South Korea and Greater China.
On said consumers under 34 now make up over one-third of its customer base. The Cloudtilt franchise is driving much of that engagement with younger buyers.
Co-CEO and founder David Allemann said the Q2 results show the brand can grow at scale without losing its premium positioning.
“This financial strength allows us to reinvest in what drives our long-term success: authentic brand connections, premium customer experiences, and, above all, continuous performance innovation,” Allemann said.
For the full year, On expects net sales growth in the low-20% range on a constant currency basis.
At current spot rates, that translates to net sales of CHF 3.47 billion to CHF 3.56 billion. The top end of that range matches the CHF 3.56 billion consensus estimate.
On expects the DTC channel to outperform wholesale in the second half of the year.
The company guided for full-year gross profit margin of at least 65.0% and adjusted EBITDA margin in the range of 19.5% to 20.0%.
The premarket drop of more than 13% came despite the earnings beat and strong margin performance, with the revenue miss appearing to be the main driver of the selloff.
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