ON (NYSE:ONON) reported what executives described as an “outstanding” start to 2026, with first-quarter net sales surpassing CHF 800 million for the first time and profitability expanding as the company reiterated its full-year growth outlook.
Net sales reached CHF 831.9 million in the quarter, up 26.4% year over year on a constant currency basis and 14.5% on a reported basis, according to outgoing CEO and CFO Martin Hoffmann. The company also reported a gross profit margin of 64.2%, up from 59.9% in the prior-year period, and an adjusted EBITDA margin of 21%, up 450 basis points year over year.
Founder and co-CEO Caspar Coppetti said the results reflected “broad-based” demand across regions, product categories and channels, citing double-digit constant currency growth in the Americas, EMEA and APAC, as well as apparel growth of more than 50% globally.
Regional and Channel Growth Remains Broad-Based
Hoffmann said direct-to-consumer sales reached CHF 322.3 million, growing 28.7% at constant currency and 16.4% on a reported basis. He said digital and physical traffic is growing faster than revenue, which he characterized as a sign that demand is ahead of current conversion.
Wholesale net sales exceeded CHF 500 million for the first time, reaching CHF 509.6 million. That represented growth of 25.1% at constant currency and 13.3% on a reported basis. Hoffmann said On continues to see momentum with key accounts including Dick’s Sporting Goods, Foot Locker and JD Sports, while noting the company is present in only about half of stores with those major partners.
By region, the Americas generated CHF 450.7 million in net sales, up 17.1% at constant currency but only 3.1% on a reported basis due to foreign exchange headwinds. EMEA net sales rose to CHF 207.1 million, growing 25.6% at constant currency, marking the sixth consecutive quarter of more than 25% constant currency growth in the region. APAC net sales reached CHF 174 million, up 61.4% at constant currency, and exceeded 20% of the company’s total business for the first time.
Hoffmann highlighted Greater China as growing well above the APAC average and said South Korea’s net sales more than tripled year over year.
Footwear Leads, Apparel Gains Share
Footwear remained On’s largest category, with net sales of CHF 763.7 million, up 24% at constant currency. Hoffmann cited continued strength from major franchises, including Cloudmonster, as well as newer products such as Cloudzone, which he said grew more than 350% in volume from a low base.
Apparel net sales reached CHF 55.3 million, rising 57.5% at constant currency and 45.1% on a reported basis. Hoffmann said apparel contributed more than 10% of direct-to-consumer sales for the first time and is becoming a more important entry point for the brand.
Coppetti pointed to lifestyle products such as Cloudtilt and Cloudtilt Remix as drivers of growth with younger consumers. He said Cloudtilt became the top seller at Foot Locker Europe “by wide margin” in March. He also cited recent collaborations and campaigns, including a Cloudswift relaunch with Kith and a female-led head-to-toe launch with Zendaya, as efforts to expand the brand’s cultural relevance while maintaining premium positioning.
Innovation Pipeline Includes LightSpray and SURREAL
Executives placed significant emphasis on On’s product innovation pipeline. Coppetti said LightSpray, the company’s robotic upper-manufacturing technology, is moving from a performance proof point toward a commercial engine. He said On increased LightSpray production capacity thirtyfold in February with the opening of a factory in Busan, South Korea.
Coppetti said the LightSpray Cloudmonster Hyper sold out quickly across many channels, with particularly strong demand in Asia Pacific and the U.S. During the opening week of On’s new Boston store, LightSpray represented close to 20% of footwear net sales, and the company is selling several hundred pairs per day through direct-to-consumer channels alone, he said.
The company also discussed SURREAL, a superfoam technology expected to debut with Cloudsurfer 3 in October and roll out across key everyday running franchises in 2027. Coppetti said SURREAL weighs roughly half as much as industry-standard EVA while providing 60% to 70% more energy return.
Leadership Transition and Strategy
The call also marked Hoffmann’s final earnings call as CEO and CFO. Coppetti thanked him for 13 years with the company and said Hoffmann will continue to support On as an adviser into next year. Frank Sluis, who became CFO on May 1, said he plans to build on the company’s financial foundation while supporting long-term growth and preserving the brand’s premium economics.
Coppetti and co-founder David Allemann are continuing as co-CEOs. In response to an analyst question, Coppetti said the management transition is intended to provide continuity, adding that the company is not changing its strategy, values or premium positioning.
When asked about the risk of driving growth by lowering prices, Coppetti said On’s ambition is not to build the largest company, but “the most desirable, most beautiful, most sustainable, most performant, most innovative company.” Hoffmann added that the company sees multiple growth trajectories in footwear, apparel, global expansion, lifestyle and retail that can be pursued in a premium way.
Guidance Reaffirmed, Profit Outlook Raised
On reiterated its full-year constant currency net sales growth guidance of at least 23%. Based on current spot rates, the company said that would translate to reported net sales of CHF 3.51 billion. Executives said they continue to expect direct-to-consumer, APAC and apparel to outperform.
The company now expects a full-year gross profit margin of at least 64.5%, despite additional tariff pressure. Coppetti said the outlook assumes 20% incremental tariff rates from Vietnam and excludes any potential refunds. On also raised its adjusted EBITDA margin outlook to a range of 19.5% to 20%.
Hoffmann said marketing expenses are expected to be between 13% and 13.5% of sales for the full year, reflecting investments in brand-building, Zendaya-related activity, LightSpray activations and media aimed at reaching newer communities.
During the question-and-answer session, executives said the company remains encouraged by U.S. demand, with U.S. brand awareness crossing 30% for the first time. Coppetti said On is reaching younger and more female consumers, while Allemann said direct-to-consumer demand remains healthy and full-price oriented.
On said it will host an Investor Day in Zurich on September 21 and 22, 2026, where it plans to present its next phase of strategy and a new 2030 vision.
About ON (NYSE:ONON)
On Holding AG, commonly known as On, is a Swiss performance footwear and apparel company headquartered in Zurich. Founded in 2010, the company designs, develops and sells running shoes, performance apparel and accessories for road, trail and everyday use. On’s product philosophy centers on engineered cushioning and responsiveness intended to serve both serious athletes and lifestyle consumers.
On is best known for its proprietary midsole technology and distinctive sole architecture, marketed under names such as the Cloud family of shoes and related performance lines.
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