On Holding AG, a prominent sportswear company, recently released its financial outcomes for the second quarter of 2026, showcasing significant expansion and a steadfast commitment to its core business principles. The company reported impressive net sales of CHF 850.3 million, marking a robust 21.6% increase at constant currency. This growth was primarily fueled by exceptional direct-to-consumer (DTC) demand across all geographic regions, with DTC sales climbing 34.3% to CHF 388.4 million, representing a record 45.7% of total sales for the quarter. This robust performance underscores the company's successful strategy of cultivating strong direct relationships with its customer base and the increasing global appeal of its brand.
The company's strategic emphasis on innovation and premium market positioning is clearly reflected in its operational results and future projections. Despite a more cautious approach to wholesale, which saw a 12.7% growth in sales, the company managed to achieve a healthy gross profit margin of 65.4%, a substantial increase from the previous year. This was attributed to a higher DTC sales mix and improved operational efficiencies in freight. Moreover, the company’s adjusted EBITDA reached CHF 168.1 million, demonstrating a strong profitability margin of 19.8% and over 30% year-over-year growth at constant currency. On Holding AG is also making significant strides in diversifying its product categories and geographical presence, with apparel sales growing 56.2% and Asia-Pacific sales surging by 54.7%, driven by strong performances in China, Japan, and South Korea.
Looking ahead, On Holding AG maintains a positive outlook, with expectations for full-year 2026 net sales to grow in the low 20% range at constant currency. The company anticipates a gross margin of at least 65.0% and an adjusted EBITDA margin between 19.5% and 20.0%, excluding potential tariff refunds. These projections highlight the company's confidence in its long-term strategy, which prioritizes sustained premium growth through relentless product innovation, strategic market expansion, and efficient operational management. By focusing on advanced technologies like CloudTec, LightSpray, and SURREAL foam, and expanding into new sports verticals such as tennis and training, On Holding AG is poised to continue its trajectory as a leading global sportswear brand, catering to a growing consumer base that values performance, design, and cultural relevance.
The company's success story is a testament to the power of unwavering focus on product excellence and strategic market engagement. By daring to challenge conventional industry norms and consistently innovating, On Holding AG has carved out a unique position, proving that a brand can achieve global scale while preserving its premium identity and financial strength. This approach not only fosters loyalty among existing customers but also attracts a new generation of consumers, securing a vibrant and enduring future for the brand.
