Switzerland's On Holding Q3 net sales rise 17%, slightly beat estimates
Overview
Swiss sportswear firm's Q3 net sales rose 17.2%, slightly beating analyst expectations
Adjusted EPS for Q3 beat analyst consensus
Company achieved record gross profit margin, aided by innovation and US tariff refunds
Outlook
On Holding expects 2026 net sales to grow in the low-20% range on constant currency basis
Company sees 2026 net sales of CHF 3.47 bln to CHF 3.56 bln at current spot rates
On Holding raises 2026 gross profit margin outlook to around 66% excluding US tariff refunds
Result Drivers
DTC GROWTH - Direct-to-consumer net sales rose 25%, lifting DTC to 42.2% of net sales
PRODUCT INNOVATION - New launches such as Cloudsurfer 3 and Cloudtilt contributed to strong sales and brand momentum
APPAREL GROWTH - Apparel net sales increased nearly 39%, driven by the Zendaya collection launch
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | CHF 931.40 mln | CHF 929.36 mln (20 Analysts) |
Q3 Adjusted EPS | Beat | CHF 0.54 | CHF 0.40 (15 Analysts) |
Q3 EPS | CHF 0.48 | ||
Q3 Adjusted EBITDA | Beat | CHF 256.80 mln | CHF 197.36 mln (20 Analysts) |
Q3 Gross Margin | 72.60% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for On Holding AG is $43.00, about 14.6% above its November 9 closing price of $37.53
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
Nov 10 - UK's Avon Technologies FY26 adjusted profit beats estimates on strong demand, cost cuts
Nov 10 - UK's Oxford Instruments H1 revenue rises on strong demand for compound semiconductors
Nov 10 - UK's Tatton Asset Management H1 profit rises on higher AUM, net inflows
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)