Sportswear brand On expects higher profit margin after strong quarterly sales

Nov 10 (Reuters) - Sportswear brand On 49G.BN raised its annual gross margin forecast after beating third-quarter sales estimates on Tuesday, as new product launches and celebrity collaboration efforts drove demand across its premium shoes and apparel collections.

The company has grown fast and expanded its store footprint globally, taking market share from bigger rivals such as Nike and Adidas.

On, which authorized its first share buyback plan up to $1 billion through the end of 2029 in September, recently entered into soccer, the world's most popular sport, by signing French star Kylian Mbappe.

It now expects fiscal 2026 gross profit margin to be around 67.5%, or about 66%, excluding US tariff refunds, compared with previous forecast of at least 65%.

The Swiss company posted third-quarter sales of 931.4 million Swiss francs ($1.14 billion), compared with analysts' estimates of 929.3 million Swiss francs, according to data compiled by LSEG.

($1 = 0.8192 Swiss francs)