Key Takeaways
- ONON shares surged over 12% following On Holding’s Investor Day presentation on Tuesday
- Swiss athletic brand unveiled its inaugural share repurchase initiative valued at $1 billion
- Company projects net revenue of minimum 5.6 billion Swiss francs by fiscal 2029
- Management established gross margin objective of minimum 65% extending through 2029, significantly outpacing Nike’s 43%
- Brand diversification includes entry into soccer and golf markets, with Kylian Mbappé serving as worldwide soccer brand representative
Shares of On Holding climbed more than 12% during Tuesday’s trading session after the Switzerland-based athletic apparel manufacturer presented its Investor Day, revealing comprehensive financial objectives extending through 2029 alongside its maiden share repurchase authorization totaling $1 billion.
ONON commenced premarket activity with a 5.86% gain at $28.92 before momentum accelerated throughout the session, pushing shares above 12% to reach $30.63. Trading volume reached 20.7 million shares, substantially exceeding the typical daily average of 7.1 million.
The equity has declined approximately one-third year-to-date, prompting market participants to question whether Tuesday’s rally signals a potential reversal.
The athletic footwear company anticipates achieving net revenue of at least 5.6 billion Swiss francs by fiscal 2029, translating to approximately $7 billion based on prevailing exchange rates. Management established a high-teens constant-currency revenue compound annual growth rate spanning 2026 through 2029.
For fiscal year 2026, the company reaffirmed projections calling for constant-currency net revenue expansion in the low-20% territory.
Profitability Outlook Commands Attention
Among the most significant announcements from Investor Day was On’s dedication to maintaining robust profitability metrics. Management established a gross profit margin objective of minimum 65% through 2029, complemented by an adjusted EBITDA margin target of at least 22% by that fiscal year.
The projected adjusted EBITDA compound annual growth rate is anticipated to surpass 20% between 2026 and 2029.
For perspective, Nike’s latest annual gross profit margin registers approximately 43%. On clearly operates within a premium segment.
Co-CEO David Allemann explained that the organization’s Premium Playbook strategy integrates product innovation at its Zurich research facilities with consumers who view athletic apparel as integral to their daily lifestyle.
Co-CEO Caspar Coppetti indicated that On remains positioned to surpass the objectives established during its 2023 Investor Day presentation.
Inaugural $1 Billion Repurchase Program and Category Expansion
The board of directors approved the company’s first-ever share buyback initiative, permitting repurchases of up to $1 billion in Class A ordinary shares through the conclusion of 2029.
For the third quarter of 2026, management provided guidance calling for constant-currency revenue growth of approximately 17%.
Expanding beyond its core running and tennis categories, On is entering the soccer and golf markets. The brand recently designated French football superstar Kylian Mbappé as its worldwide ambassador for its soccer category expansion.
On presently maintains a market capitalization of approximately $9 billion, with shares trading within a 52-week range spanning $26.36 to $51.08.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
