Given recent geopolitical developments, how are U.S. demand trends quarter-to-date, and how have expectations for this market changed for the rest of the year?

Caspar Coppetti expressed satisfaction with U.S. performance, noting brand awareness crossed 30% and successful reach to younger, more female audiences through initiatives like the Zendaya collection and Cloudtilt. David Allemann added that D2C growth remains strong, with digital and physical traffic outstripping revenue growth, indicating future potential. Management emphasized continued premium execution and significant room for expansion within wholesale partners. “Overall, we're extremely happy with what we're seeing in the U.S. We feel this is a very strong quarter for us. What's making us very optimistic is that for the first time in the U.S., awareness crossed the 30% threshold.”

With the management change, how will the company resist the temptation to prioritize sales growth over brand equity and premium positioning?

Caspar Coppetti reiterated the company's long-standing commitment to building the 'most desirable, most beautiful, most sustainable, most performant, most emotive' company, not the largest. He emphasized that profitability and premium positioning will always come first, driven by innovation and a unique approach to the sportswear market. “Look, our dream is to build a company that's completely different from anything that exists. So we're charging our own course. And so from day 1, we never dreamed of building the largest company, where we dreamed of building the most desirable most beautiful, most sustainable, most performant most emotive company. And with that also, and I think the results this quarter show that our ambition also the most profitable.”

Can you share more about your vision for the 2030 roadmap, and provide a broader outlook on marketing expenses and efficiency drivers?

Caspar Coppetti stated the 2030 roadmap will be unveiled at the Investor Day in September, promising surprises. Martin Hoffmann clarified that full-year marketing expenses are expected to be 13% to 13.5% of net sales, reflecting strategic investment to convert increased brand awareness into sales. Caspar added that AI is driving speed and efficiency in innovation and design. “And therefore, we expect that our marketing expenses for the full year will be rather somewhere between 13% and 13.5%, that's baked into the guidance that you have seen.”

ONON

On Holding AG (ONON) Q1 FY26 earnings call: guidance and Q&A

Q: Can you elaborate on the division of responsibilities between the two co-CEOs, Caspar and David, and highlight initiatives you've worked on previously?

Caspar Coppetti stated the transition emphasizes continuity, with both co-CEOs driving strategic building blocks like retail expansion, apparel, and LightSpray. Frank Sluis (CFO) and Scott Maguire (President & COO) will report to both co-CEOs, ensuring alignment and execution of the strategy. “Look, this management transition is really in the spirit of continuity. So we've worked very closely for 13 years now. In the last year, we spent a lot of time together with Martin and the senior leadership team on developing the strategy that we're going to share with you in the Investor Day. And so nothing changes in how we approach the business, nothing changes in how we guide and nothing changes about the confidence that we have in the outlook.”

Earnings call· Mar 2026 (Q1 FY26)· Materials· May 12, 2026

Source: earnings call transcript

Executive summary

On Holding AG Q1 FY26 — Record Revenue and Strong Profitability Driven by Premium Strategy

On Holding AG delivered a strong first quarter, achieving record revenue and profitability driven by its premium strategy, broad-based demand across regions and categories, and continued innovation. The company is navigating a leadership transition with co-CEOs and a new CFO, while reaffirming its commitment to high-quality growth and strategic investments in product, brand, and retail. The focus remains on expanding its premium market position and driving long-term value creation.

Highlights

Net sales exceeded CHF 830 million, growing 26.4% at constant currency.
Gross profit margin reached a record 64.2%, up 430 basis points year-over-year.
Adjusted EBITDA margin was 21%, increasing 450 basis points year-over-year.
Asia Pacific net sales grew 61.4% at constant currency, exceeding 20% of overall business for the first time.
Apparel net sales grew 57.5% at constant currency, contributing over 10% of D2C sales.

Concerns

Americas reported net sales growth was 3.1%, reflecting significant foreign exchange headwinds compared to 17.1% constant currency growth.
The company noted an unpredictable macroeconomic backdrop and an increasingly promotional market, though it maintains a full-price strategy.
Guidance assumes 20% incremental tariff rates from Vietnam, impacting profitability.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Net Sales Growth	at least 23% high materiality	FY26	High
Full-year 2026 Reported Net Sales	CHF 3.5 billion high materiality	FY26	High
Full-year 2026 Gross Margin	at least 64.5% high materiality	FY26	High
Full-year 2026 Adjusted EBITDA Margin	19.5% to 20% high materiality	FY26	High
D2C Channel Growth Rate	similar to Q1 medium materiality	FY26	High
Wholesale Channel Growth Rate	slower than D2C medium materiality	FY26	Medium
Full-year 2026 Marketing Expenses as % of Net Sales	13% to 13.5% medium materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Americas Achieved a new quarterly record for net sales, with strong constant currency growth despite significant foreign exchange headwinds. Brand awareness crossed the 30% mark. Constant Currency Growth: 17.1%	CHF 450.7 million	3.1%	—	—
EMEA Marked the sixth consecutive quarter of more than 25% constant currency growth, driven by broad-based performance across countries like the U.K. and Germany, despite geopolitical situations in the Middle East. Constant Currency Growth: 25.6%	CHF 207.1 million	22.8%	—	—
Asia Pacific Continued rapid controlled expansion, exceeding 20% of overall business for the first time. Growth was balanced across subregions and channels, with Greater China growing well above regional average and South Korea net sales more than tripling year-over-year. Constant Currency Growth: 61.4%Share of Overall Business: >20%	CHF 174 million	44.4%	—	—
Direct-to-Consumer Channel Led growth for the company, with digital and physical traffic outstripping revenue growth, indicating strong brand momentum and future potential. Apparel contributed over 10% of D2C sales for the first time. Constant Currency Growth: 28.7%	CHF 322.3 million	16.4%	—	—
Wholesale Channel Delivered strong growth, exceeding CHF 0.5 billion in quarterly net sales for the first time. Continued momentum with global key accounts, with significant room for further door expansion. Constant Currency Growth: 25.1%	CHF 509.6 million	13.3%	—	—

ONON operating KPIs by quarter

ONON operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	Jun 2026 Q2 FY26	Change vs prior quarter
Employees	<4,000 All of this is only possible through the passion and dedication of our nearly 4,000 team members globally. Source: earnings call transcript	4,000 Secondly, the huge ambition and growth mindset of our 4,000 team members and the still untapped potential in so many areas including retail and apparel to just mention a few. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
LightSpray Factory	expansion	Q1 FY26
Cloudmonster Hyper	launch	Q1 FY26
Cloudmonster 3	update	Q1 FY26
SURREAL SuperFoam	launch	October 2026 (debut), 2027 (rollout)
Cloudtilt Remix	update	Q1 FY26
Cloudnova Moon	launch	Q1 FY26
SenseTec	expansion	Q1 FY26
Formtech	launch	Fall/Winter FY26

Deals & partnerships

Zendaya Co-created apparel range and Cloudnova Moon launch

Collaboration with Zendaya for an apparel range and the Cloudnova Moon shoe, targeting younger and more lifestyle-oriented consumers.

LOEWE Integration of LightSpray technology into ongoing collaboration

Bringing LightSpray technology into the collaboration with LOEWE, showcasing advanced performance technology at the high end of premium design.

Risks & headwinds

Foreign Exchange Headwinds Q1 FY26

Americas reported growth of 3.1% vs 17.1% constant currency growth

Mitigation:Company's strong gross profit allows absorption of external pressures.

Geopolitical Situation Q1 FY26

Discussed, not quantified

Mitigation:Broad-based success and resilience of the EMEA region helped mitigate impact.

Unpredictable Macroeconomic Backdrop FY26

Discussed, not quantified

Mitigation:Company's confidence in its premium strategy and product innovation allows reiteration of guidance.

Increased Promotional Market Ongoing

Discussed, not quantified

Mitigation:Company remains committed to its full-price strategy and disciplined growth.

Tariff Impact FY26

20% incremental tariff rates from Vietnam assumed in guidance

Mitigation:Strong gross profit allows absorption of additional impact from tariffs.

What to watch in Q2 FY26

D2C Share Growth

Next quarter and full year FY26

Current 38.7%

Target Increase by 100-200 bps per year

Why it matters

D2C channel is a key driver of premium growth and margin expansion, and management expects it to outperform.

We have been very consistent in saying that we want to increase D2C share by 100 to 200 basis points per year, and that also remains our expectation for the full year '26. Currently, we are at 38.7% in D2C share.

Find out whether ONON delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you elaborate on the division of responsibilities between the two co-CEOs, Caspar and David, and highlight initiatives you've worked on previously?

Caspar Coppetti stated the transition emphasizes continuity, with both co-CEOs driving strategic building blocks like retail expansion, apparel, and LightSpray. Frank Sluis (CFO) and Scott Maguire (President & COO) will report to both co-CEOs, ensuring alignment and execution of the strategy.

“Look, this management transition is really in the spirit of continuity. So we've worked very closely for 13 years now. In the last year, we spent a lot of time together with Martin and the senior leadership team on developing the strategy that we're going to share with you in the Investor Day. And so nothing changes in how we approach the business, nothing changes in how we guide and nothing changes about the confidence that we have in the outlook.”

asked by Aubrey Tianello · answered by Caspar Coppetti

2 min read 5 chapters

Detailed narrative

Innovation and Product Pipeline

On continues to drive innovation with significant advancements like LightSpray technology, which saw its production capacity increase 30-fold with a new factory in Busan, South Korea. The LightSpray Cloudmonster Hyper sold out quickly, particularly in Asia Pacific and the U.S., with LightSpray representing nearly 20% of footwear net sales in the new Boston store.

The company also introduced SURREAL SuperFoam, a lighter and more energetic material, set to debut with Cloudsurfer 3 in October and roll out across everyday running franchises in 2027. These innovations are central to On's strategy of offering differentiated, high-quality products.

Brand Momentum and Consumer Engagement

The brand experienced strong momentum, with U.S. brand awareness crossing the 30% mark for the first time. Marketing efforts, including a campaign with Zendaya, generated over 20 million highly engaged views in the U.S. and contributed to a significant increase in the share of 18- to 24-year-olds in the DTC customer base.

Partnerships, such as the LOEWE collaboration integrating LightSpray, further enhance premium positioning and cultural relevance, attracting new and younger audiences to the brand.

Channel and Geographic Expansion

On's direct-to-consumer (DTC) channel led growth with a 28.7% constant currency increase, outpacing wholesale. The company's physical stores are performing well, with meaningful same-store growth in locations like Miami, Milan, and Tokyo. New store openings are planned for Stockholm, Sydney, San Francisco, and Sao Paulo, strategically expanding brand presence.

Asia Pacific demonstrated exceptional growth of 61.4% constant currency, with Greater China performing above average and South Korea tripling net sales year-over-year, highlighting the success of controlled global expansion.

Leadership Transition and Strategic Continuity

The quarter marked a leadership transition with Martin Hoffmann's departure as CEO and CFO, and the appointment of Frank Sluis as the new CFO. Founders Caspar Coppetti and David Allemann will now serve as co-CEOs, emphasizing continuity in strategy and values.

The company plans to host an Investor Day in Zurich on September 21-22, 2026, to present its new 2030 vision and plan, reinforcing its long-term growth ambitions and commitment to its premium positioning.

Financial Discipline and Premium Strategy

On's disciplined focus on premium execution resulted in a record gross profit margin of 64.2% and an adjusted EBITDA margin of 21%. The company attributes this to its full-price strategy, ASP strength (increasing from $145 to over $170), and operational efficiencies.

Management stated that the 64.5% gross margin expected for the full year is a new baseline, allowing for continued reinvestment into product innovation and brand building while expanding profitability.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.