ONON
A very Swiss kind of flex
On Holding just turned in a quarter that would make any brand team smile: record first-quarter net sales of 831.9 million Swiss francs, adjusted EPS of 47 cents in U.S. terms, and a gross margin that sprinted up to 64.2%. In other words, people are still paying full price for the cool shoes — and On is keeping more of each sale.
The numbers weren’t the problem
Growth showed up everywhere except the stock chart. Direct-to-consumer sales rose 16.4%, wholesale climbed 13.3%, and the brand kept pushing into new territory with Asia-Pacific revenue up 44.4%. Footwear still does the heavy lifting, but apparel and accessories are growing like they’ve had one too many energy drinks.
Tariffs are the cloudy part
The company didn’t pretend the macro mess doesn’t exist. It raised profitability guidance, but that forecast still bakes in a 20% additional tariff on products imported into the U.S. from Vietnam and excludes any possible tariff refunds. Translation: the business looks strong, but the bill for global trade politics is still sitting on the counter.
Why investors should care
On reaffirmed at least 23% constant-currency sales growth for fiscal 2026 and now sees gross margin of at least 64.5% with adjusted EBITDA margin of 19.5% to 20.0%. That’s a pretty loud signal that premium branding, full-price selling, and operating leverage are doing the heavy lifting — even if the shares got dinged in premarket anyway. Big picture: this is still a growth story, just with a side of tariff drama.