On Enters Next Chapter: Unveils Strategy to Redefine What a Sportswear Brand Can Be Alongside 2029 Financial Targets
On Holding AG (“On” or the “Company”), the Swiss premium sportswear brand, hosts its 2026 Investor Day at On Labs in Zurich. As its current three-year horizon draws to a close, the Leadership Team presents the Company’s strategy and mid-term financial targets for the 2026–2029 period, detailing its vision to redefine what a sportswear brand can be. This includes further details on the entry into new sports categories Football and Golf, as On continues to establish itself as the most premium global sportswear brand.
The On Premium Playbook
The On Premium Playbook is the mechanism behind the Company’s 2029 ambitions. At the Investor Day, the Company’s leadership presents the framework and its five reinforcing steps:
- Create innovative products. An obsession with breakthrough innovation to create products designed for performance and expression. It begins at On Labs in Zurich, where exceptional talent and an entrepreneurial culture intersect. By combining material science, structural superfoams, and radical manufacturing platforms, On creates distinctive, premium performance products designed to set new standards.
- Validate through athletes and talents. Product credibility is earned at the highest levels of performance. On’s innovations are validated through authentic partnerships with elite global athletes on championship and Olympic stages, driving genuine brand preference and cultural relevance. The Company prioritizes earned brand equity over promotional spending to build long-term consumer desire.
- Deliver premium experiences. Elevated engagement across global markets, to deepen consumer relationships. On connects with consumers through immersive brand experiences across its owned Direct-to-Consumer (DTC) channel and strategic wholesale partners, deepening customer engagement across global markets.
- Capture high-quality earnings. Differentiated offerings and experiences provide the baseline for strong demand generation and capture across new and existing fans. On’s discipline in execution and reinvestment will enable a high full-price share and strong financial outcome in the form of premium growth.
- Invest in a culture of innovation and excellence. Strong financial results directly fund the future, allowing for sustained investment in people and technology to foster a culture of bold ideas and high performance. Operating cash flow is reinvested into On’s world-class team, collaborative culture, and advanced R&D capabilities, allowing for sustained innovation leadership.
Financial Ambitions Through 2029
To anchor its next era of profitable expansion through fiscal year 2029, On is setting new financial targets guided by the On Premium Playbook, built on three drivers of premium growth: multi-dimensional top-line growth across verticals, regions, and channels; an industry-leading gross profit margin; and operating cost leverage and productivity gains from a business at greater scale. For the 2026–2029 period, On is introducing the following new mid-term financial ambitions:
- Net sales: High-teens constant currency growth and corresponding absolute net sales reaching at least CHF 5.6 billion in 2029 (approaching USD 7 billion) at current FX rates.
- Gross profit margin: Commitment to an industry-leading gross profit margin of 65.0%+ throughout the period.
- Adjusted EBITDA margin: Ambition to reach an Adjusted EBITDA margin of 22%+ by 2029.
- The above dynamics result in a target adjusted EBITDA CAGR above 20% for the 2026–2029 period.
Share Repurchase Authorization
Reflecting On’s strong balance sheet and the highly cash generative nature of its premium growth, the Company intends to return capital to shareholders as part of a disciplined capital allocation strategy. On has received authorization from its Board of Directors in September 2026 to repurchase up to an aggregate of USD 1 billion of its Class A Ordinary shares through the end of December 2029.
Lead Independent Director Appointment
On also announces the appointment of Laura Miele as Lead Independent Director, effective September 21, 2026. Laura has served on On’s Board of Directors and its Audit Committee since 2024, and was appointed to the newly created role by On’s independent directors.
Laura is President of Enterprise Development at Electronic Arts, responsible for strategic growth areas beyond EA’s core business that build on the company’s strengths and extend across entertainment. She joined EA in 1996 and has since held commercial, creative and technology leadership roles across the company, including President of EA Entertainment, Chief Operating Officer and Chief Studios Officer.
2026 Outlook
The Company reiterates its full-year 2026 outlook: constant currency net sales growth in the low-20% range, a gross profit margin of at least 65.0%, and an adjusted EBITDA margin in the range of 19.5% to 20.0%.
These figures exclude the benefit of tariff refunds. Up to USD 65 million (up to CHF 53m at current FX rates) are expected to be received in the third quarter of 2026, with this amount anticipated to benefit the quarter’s reported gross profit.
For the third quarter of 2026, On further expects to achieve a constant currency net sales growth rate of around 17%. This reflects the disciplined wholesale sell-in execution On introduced in context of its second quarter results as well as the continued strong momentum in its DTC channel.
Executive Commentary
David Allemann, Founder and Co-CEO of On, said: “Almost seventeen years ago, On started from a radical idea. We asked whether running could feel fundamentally different, and whether elite performance could merge with elevated contemporary design. Today, we are setting out to redefine what a sportswear brand can be, building at a scale we could not have imagined back then. With the On Premium Playbook, we are setting out to connect the innovation from our On Labs in Zurich to a growing population of global fans for whom movement is no longer utility, but identity, and who carry that into how they dress, where they shop and who they follow.”
Caspar Coppetti, Founder and Co-CEO of On, said: “We are on track to significantly overachieve our targets given at the last Investor Day in 2023. For the period through 2029, we are committing to premium as our northstar, staying focused on the long term, and executing on each turn of the On Premium Playbook. It is simple in principle, demanding in practice, and powerful because it compounds: Top-line expansion and margin expansion are not in conflict at On; they are complementary outputs of our Premium Playbook.”
Frank Sluis, CFO of On, said: “Our outlook firmly establishes On as a high-quality earnings compounder. The demand is premium and multi-dimensional, with strength across all verticals and every region and every channel contributing. This enables us to maintain an industry-leading gross profit margin of at least 65.0%, while continuing to invest in our business. At this scale, it also converts into meaningful SG&A leverage, driving strong, compounding adjusted EBITDA growth.”