Key Highlights

  • Net sales reached a record USD 1.11 billion, equal to CHF 931.4 million, up 17.8% at constant currency.
  • EPS of USD 0.65 beat the USD 0.47 estimate, while Revenue landed in line with the USD 1.11 billion forecast.
  • Underlying adjusted EBITDA Margin expanded 130 basis points to a record 21.9%, excluding one-off Tariff and freight items.
  • Management raised its full-year gross margin outlook to around 66% from at least 65%, excluding tariff refunds.

On Holding (NYSE:ONON) reported third quarter 2026 net sales of USD 1.11 billion, equal to CHF 931.4 million, a company record and the first time quarterly sales passed CHF 900 million. Growth was 17.8% at constant currency and 17.2% as reported. EPS of USD 0.65 compared with a USD 0.47 estimate, while revenue matched the USD 1.11 billion forecast. Co-CEO Caspar Coppetti described the period as the first quarter of the company's three-year plan to grow faster than its industry and expand Earnings faster than sales.

Every region, channel and category contributed. Direct-to-consumer sales rose 25.0% as reported to CHF 393.3 million, lifting that channel to 42.2% of sales, up 2.6 percentage points. Wholesale grew 12.2% as reported to CHF 538.2 million. Footwear rose 16%, apparel 38% and accessories 40.2%, and apparel together with accessories now exceed 9% of sales.

Margins Reach Record Levels

Gross margin, excluding tariff refunds, was 66.9%, the highest in company history. Including CHF 52.6 million of US tariff refunds, reported gross margin was 72.6%. Underlying adjusted EBITDA margin rose 130 basis points to 21.9% when one-off tariff and freight items are excluded. Selling, general and administrative expenses, excluding share-based compensation, rose 270 basis points as a share of sales, while Marketing was 12.1% of sales, a little below the year's run rate because of phasing.

Cash stood at CHF 1.34 billion, up more than CHF 300 million since the start of the year. Inventory increased to CHF 495.7 million, up 30.2%, although unit volumes rose just 16%, below the pace of sales growth and a step down from the 20% to 25% increases of recent quarters.

Regionally, the Americas grew 12.4% to CHF 490.1 million. Europe, the Middle East and Africa grew 17.9% as reported and passed CHF 250 million in a single quarter for the first time. Asia Pacific rose 31.1% to CHF 189.9 million, and management projects growth closer to the mid-to-high 20s range set for the period through 2029.

Product Launches and Outlook

Management pointed to the Cloudsurfer 3, built on a new foam, which sold through at more than four times the rate of its predecessor in launch week and is already the top model at several run specialty partners. Demand for a LightSpray version of the Cloudboom Strike 2 was six times what the company could produce. New lifestyle silhouettes, including a model created with Zendaya, and apparel launches also performed ahead of plan, the company said.

For the full year, the company reiterated net sales growth in the low 20s at constant currency. It raised the gross margin outlook to around 66%, excluding tariff refunds, from at least 65%, and projects an adjusted EBITDA margin of 19.5% to 20% on that basis. Including tariff refunds, the outlook is a gross margin near 67.5% and an adjusted EBITDA margin of 21% to 21.5%.

The company said much of its planned technology and marketing Investment lands in the second half, supporting launches in football and golf next year.

Investment Phasing and Product Cadence to Watch

Several items frame the coming quarters: how inventory growth compares with unit sell-through, the pace of the apparel build-out toward the goal of tripling net sales over three years, and the share of direct-to-consumer sales as the channel mix shifts. Management also flagged a highly promotional industry backdrop and a commitment to full-price selling.

Marketing phasing and second-half technology spending are additional variables, as is the rollout of new foams across running franchises through the end of 2027.