apparel<\/a>,\u201d he said. \u201cTen percent of new customers come to us through apparel now. It\u2019s a strong acquisition category and helps us grow our basket size. The opportunity is massive.\u201d<\/p>\n\n\tThe collection, which blends performance attributes with fashion styling, helps set On apart, he said. \u201cThe goal is to combine performance and sport. Sports is the new fashion and movement is the new luxury,\u201d he said.<\/p>\n
\n\tHoffmann said that the new stores are about 40 percent larger on average than the older units, \u201ca direction we will continue,\u201d and a move that better showcases apparel. The plan, he said, is to add between 15 and 20 stores this year.<\/p>\n
\n\t\u201cDTC grew faster than wholesale,\u201d he said, which indicates the \u201cimportance of connecting with the customer directly.\u201d<\/p>\n
\n\tHoffmann said On\u2019s continued ability to grow is proof that its premium positioning is working. <\/p>\n
\n\t\u201cThis is not a moment to engage in sales events, but to execute our strategy,\u201d he said, pointing to the \u201csuper-strong fourth quarter, which was even better than expected, across all regions, and all channels: e-comm, retail and wholesale.\u201d<\/p>\n
\n\tClearly, the company is continuing to expand on several fronts at once and has no intention of letting up.<\/p>\n
\n\t\u201cSurpassing the CHF 3 billion [or nearly $4 billion] annual revenue milestone with record profitability is a profound validation of our vision to build the world\u2019s most premium global sportswear brand,\u201d said David Allemann, cofounder and executive co-chairman. \u201cWe are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity and performance. On is uniquely positioned to deliver what this discerning consumer demands \u2014 from scaling breakthrough innovations like LightSpray to deepening our cultural resonance and delivering our fullest brand expression from toe-to-head. We are building a brand designed for the future of movement.\u201d<\/p>\n
\n\tHoffmann said this year will represent On\u2019s \u201cmost exciting product pipeline ever.\u201d That will include the scale of its popular LightSpray technology. He said that includes opening a factory in South Korea with 30 times more production capacity. The LightSpray Cloudmonster 3 Hyper mass market shoe with a 3D-printed upper is scheduled to be launched on Thursday.<\/p>\n
\n\tIn addition to LightSpray, On will also lean into innovation in its core running franchises and expand its apparel offering.<\/p>\n
\n\tAs a result, the firm projected that net sales this year will grow by at least 23 percent on a constant currency basis, reaching at least 3.44 billion Swiss francs. It is also expecting a gross profit margin of at least 63 percent and an adjusted EBITDA between 18.5 percent and 19 percent.<\/p>\n
\n\tIn advance of the earnings release, Truist Securities\u2019 analysts maintained their buy rating on the stock, adding that they remained \u201cbullish\u201d on the company and sees \u201cmeaningful room for expansion across regions\/channels\/categories with a packed 2026 product pipeline.\u201d They cited growth in the company\u2019s footwear offerings, notably the Cloudrunner 3 and LightSpray Cloudboom Strike.<\/p>\n
\n\tShares are down 22 percent from their peak in May 2025, which represents an opportunity for investors, the Truist team said. \u00a0<\/p>\n
\n\tTom Nikic of Needham & Co. also has a buy rating on the stock. \u201cWe believe On continues to exhibit momentum and will remain a compelling growth story in 2026,\u201d he wrote in an analysis. \u201cBrand awareness continues to grow globally, and we believe they are getting more meaningful growth contributions from Asia, EMEA, and apparel.\u201d<\/p>\n
\n\tHowever, there are a couple of headwinds to consider, he said: the impact of tariffs and the strength of the Swiss franc which will \u201ctake a meaningful chunk out of revenues this year.\u201d<\/p>\n
\n\tDylan Carden of William Blair said the stock remains his \u201ctop pick for 2026,\u201d and believes this year will be pivotal for the company despite heightened competitive threats from Hoka and Nike. He rated the stock \u201coutperform.\u201d<\/p>\n
\n\tCristina Fernandez of Telsey Advisory Group also rated the stock \u201coutperform,\u201d citing strong product introductions for the Cloudrunner 3 and strength of apparel in the direct-to-consumer channel.<\/p>\n
\n\tThe team at Piper Sandler cited the planned footwear introductions as positive, and \u201csuperior to peers.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"On Holding continued to run hotter than Wall Street expected in the fourth quarter as the Zurich-based running…\n","protected":false},"author":2,"featured_media":23871,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[15169,15170,15171,41,17],"class_list":{"0":"post-23870","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-switzerland","8":"tag-apparel","9":"tag-on-running","10":"tag-shoes","11":"tag-swiss","12":"tag-switzerland"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/23870","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=23870"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/23870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/23871"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=23870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=23870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=23870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}