Shares of Swiss sportswear brand On Holding plummeted more than 20% on August 11 from the previous day’s close, after the company reported second-quarter fiscal 2026 (April-June) results showing net sales below market expectations and a growth slowdown in the Americas, its most critical market, triggering investor disappointment.<\/p>\n
The company posted net sales of 850.3 million Swiss francs (approximately $1.05 billion) for the second quarter, falling short of the analyst consensus estimate of 878.16 million Swiss francs. On the other hand, adjusted earnings per share came in at 0.35 Swiss francs, slightly exceeding the forecast of 0.34 Swiss francs.<\/p>\n
In the Americas region, which accounts for more than half of total revenue, sales growth on a currency-neutral basis decelerated to 13%, down from 17% in the first quarter. According to Reuters, the slowdown in the U.S. market underscores a dynamic where On, even as it continues to steal market share from giants like Nike and Adidas, is feeling the direct pressure of consumers reining in spending amid a deteriorating macroeconomic environment.<\/p>\n
In stark contrast, sales in the Asia-Pacific region surged 54.7% on a currency-neutral basis, demonstrating its growing presence as a new growth engine.<\/p>\n
During the earnings presentation, management stated that the company would not “compromise” on its full-price sales strategy to boost volumes, even as major competitors resort to discounting to attract cash-strapped consumers. The strategy has shown some success, with direct-to-consumer sales through company-owned stores and its website growing approximately 34%. However, wholesale revenue through other retailers grew just 12.7%, a sharp deceleration from 25.1% in the previous quarter.<\/p>\n
Founded in 2010, On Holding is an emerging brand that has achieved rapid growth with its distinctive hollow-sole sneakers. It has swiftly broken into the sportswear market long dominated by Nike and Adidas, steadily eroding the market share of both incumbents.<\/p>\n
The company raised its full-year gross profit margin guidance to at least 65%, up from the previous 64.5%. It also provided a range for its full-year net sales outlook on a currency-neutral basis, projecting between 3.47 billion and 3.56 billion Swiss francs, compared to the prior forecast of approximately 3.51 billion Swiss francs.<\/p>\n
Notably, rival Adidas saw its shares fall roughly 12% last month after reporting quarterly profit that missed market expectations, suggesting that headwinds are buffeting the broader sportswear industry.<\/p>\n
The growth slowdown in the U.S. market is likely to serve as a litmus test for the sustainability of On’s business model \u2014 specifically, whether it can continue its rapid expansion without resorting to the deep discounting that has plagued many of its competitors.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Swiss sportswear brand On Holding plummeted more than 20% on August 11 from the previous day’s…\n","protected":false},"author":2,"featured_media":114404,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[46357,55777,8074,491,48585,41,17],"class_list":["post-114403","post","type-post","status-publish","format-standard","has-post-thumbnail","category-switzerland","tag-adidas","tag-americas-region","tag-asia-pacific-region","tag-nike","tag-on-holding","tag-swiss","tag-switzerland"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117081633373557155","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/114403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=114403"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/114403\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/114404"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=114403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=114403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=114403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}