Key Highlights
- Shares of ONON surged over 12% following the company’s Investor Day presentation on Tuesday
- On Holding unveiled its inaugural $1 billion share buyback authorization
- The Swiss athletic brand projects net sales reaching at least 5.6 billion Swiss francs by 2029
- Company sets gross profit margin goal of minimum 65% extending through 2029, significantly outpacing Nike’s 43%
- Strategic expansion into soccer and golf markets, featuring Kylian Mbappé as global football brand ambassador
On Holding shares rallied more than 12% during Tuesday’s trading session following the Swiss athletic apparel maker’s Investor Day presentation, where management unveiled a comprehensive financial blueprint extending to 2029 alongside its inaugural $1 billion share repurchase authorization.
The stock began premarket trading approximately 5.86% higher at $28.92, then accelerated gains past 12% during regular hours, reaching $30.63. Trading volume surged to 20.7 million shares, substantially exceeding the typical daily average of 7.1 million.
Following a decline of roughly one-third in valuation year-to-date, Tuesday’s rally has market participants questioning whether the stock has found its bottom.
The company forecasts net sales will achieve at least 5.6 billion Swiss francs by 2029, translating to approximately $7 billion based on prevailing exchange rates. Management outlined expectations for high-teens constant-currency sales compound annual growth rate spanning 2026 through 2029.
For fiscal 2026, On reaffirmed its outlook calling for constant-currency net sales expansion in the low-20% range.
Impressive Profitability Projections
Among the most compelling announcements from Investor Day was On’s focus on maintaining premium profitability levels. The athletic brand established a gross profit margin objective of no less than 65% through 2029, complemented by an adjusted EBITDA margin target of at least 22% by that timeframe.
The adjusted EBITDA compound annual growth rate is projected to exceed 20% between 2026 and 2029.
For perspective on these margin ambitions, Nike’s latest annual gross profit margin registers approximately 43%. On clearly operates with a distinctly premium positioning.
Co-CEO David Allemann emphasized that the company’s Premium Playbook strategy bridges product innovation at its Zurich research facilities with consumers who integrate athletic apparel into their everyday lifestyle.
Co-CEO Caspar Coppetti noted the company remains positioned to surpass the objectives established during its 2023 Investor Day presentation.
Historic Buyback Authorization and Category Expansion
The board of directors greenlit On’s first-ever share repurchase initiative, authorizing the company to acquire up to $1 billion worth of Class A ordinary shares before the conclusion of 2029.
For the third quarter of 2026, On projects constant-currency sales growth of approximately 17%.
Expanding beyond its core running and tennis categories, On is entering the football and golf segments. The brand recently appointed French soccer icon Kylian Mbappé as its global ambassador to spearhead its soccer category expansion.
On Holding presently maintains a market capitalization near $9 billion, with shares trading within a 52-week range of $26.36 to $51.08.
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