On Holding's Sales Growth Forecast and Q4 Performance

On Holding, the Swiss sneaker manufacturer known for its Cloudmonster line, has projected a significant slowdown in sales growth for 2026. The company anticipates net sales growth of at least 23% in constant currencies, translating to a minimum of 3.44 billion Swiss francs ($4.38 billion) at current exchange rates. This forecast marks a decline from the 35.6% growth achieved in fiscal 2025 and falls short of analyst expectations, which estimated sales around 3.7 billion francs.

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In its latest quarterly report, On Holding reported a revenue increase to 743.8 million francs for the three-month period ending December 31, 2025, reflecting a 22.6% rise from 606.6 million francs in the same quarter the previous year. The company's adjusted earnings per share reached 25 cents, surpassing the anticipated 20 cents. Despite these positive figures, On's net income decreased to 69.1 million francs, down from 89.5 million francs a year earlier.

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David Allemann, co-founder and executive chair of On Holding, emphasized a strategic approach to growth in 2026, focusing on long-term brand development rather than short-term gains. He noted the importance of understanding market dynamics, particularly in the Americas, and indicated that the company would be selective in its expansion efforts, including store openings and product launches. Allemann stated, "We don't want to build a brand just for the next years... so we're strategic in how we penetrate channels."

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While On Holding exceeded expectations in footwear revenue and sales within its wholesale channel, performance varied across different product categories and regions. Sales of apparel and accessories fell short of estimates, as did revenue from the direct sales channel and in key markets such as the Americas and Asia-Pacific. However, the company reported a gross margin of 63.9%, surpassing the expected 62.5%, and an adjusted EBITDA margin of 17.6%, which exceeded the forecast of 15.9%.

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The market reacted negatively to On Holding's sales growth forecast, with shares dropping 14% in premarket trading following the announcement. Analysts have expressed concerns regarding the company's ability to maintain its rapid growth trajectory amid increasing competition in the sneaker market.

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• "We don't want to build a brand just for the next years." — David Allemann, Co-founder and Executive Chair, On Holding

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• "Sales rose to 743.8 million francs, up 22.6% from 606.6 million francs a year earlier." — On Holding Financial Report

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On Holding's financial outlook for 2026 indicates a strategic pivot towards sustainable growth, despite a projected slowdown in sales growth. The company's mixed performance in Q4 highlights both strengths and weaknesses in its product offerings, as it navigates a competitive landscape while aiming to solidify its brand presence for the long term.

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