Growth and Buyback Plan
On Holding Targets CHF5.6 Billion Revenue By 2029 And Launches Buyback
Anonymous
Key Points
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On Holding shares rose about 6% in premarket trading after the company announced its long-term targets and buyback program.
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The company said it had received approximately CHF 28 million in tariff-refund proceeds by mid-August, after reporting second-quarter sales below estimates amid slowing growth in the Americas and a difficult macroeconomic environment.
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On’s near-term growth plan balances disciplined wholesale management with strong direct-to-consumer momentum, a mix the company cited in explaining its outlook.
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The company is backed by Swiss tennis star Roger Federer, while its recent Kylian Mbappé partnership is intended to raise the brand’s profile as it challenges Nike, Adidas and Puma in football.
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On framed its strategy around an “On Premium Playbook” and said it aims to “redefine what a sportswear brand can be” for the “Movement Class.”
Swiss athletic brand On Holding set ambitious goals for 2029, targeting at least CHF 5.6 billion in sales and a 22% adjusted EBITDA margin Yahoo Finance. The company also approved its first-ever $1 billion stock buyback program through December 2029, sending shares up about 6% in premarket trading Simply Wall St.
On Holding reiterated its 2026 outlook for low-20% sales growth and maintained expectations for 65% or higher gross margins Yahoo Finance. The company faces slower growth in the Americas but expects to substantially exceed targets set at its 2023 investor day, backed by partnerships with soccer star Kylian Mbappé and founder Roger Federer Ministry of Sport.
Aggressive Growth Plan Through 2029
On Holding targets high-teens constant-currency annual sales growth over the next three years Yahoo Finance. The company aims to reach CHF 5.6 billion in revenue by 2029 while keeping gross margins at 65% or higher Simply Wall St. This strategy balances disciplined wholesale management with strong direct-to-consumer momentum to drive results.
For 2026 specifically, On expects low-20% constant-currency sales growth and a 19.5%–20% adjusted EBITDA margin Simply Wall St. Third-quarter sales are expected to rise about 17%, excluding up to $65 million in tariff refunds the company received Yahoo Finance.
Record $1 Billion Buyback Program Approved
On Holding authorized its first-ever $1 billion Class A share repurchase program running through December 2029 Yahoo Finance. The stock rose about 6% on the announcement, though shares remain down roughly 40% from earlier highs Yahoo Finance. The buyback signals management confidence in the company's long-term growth prospects.
The company received approximately CHF 28 million in tariff-refund proceeds by mid-August Simply Wall St. This cash injection, combined with strong operational momentum, gives On the financial flexibility to return capital to shareholders while investing in expansion Ministry of Sport.
New Sports Partnerships Expand Market Reach
On Holding strengthened its brand profile through a partnership with soccer star Kylian Mbappé Ministry of Sport. The company plans to enter football and golf markets as part of its expansion strategy Ministry of Sport. These moves position On to challenge Nike, Adidas and Puma across new sports categories.
The company frames its strategy around the "On Premium Playbook" and aims to "redefine what a sportswear brand can be" for the "Movement Class" Yahoo Finance. Founder Roger Federer remains a key backer, while the company invests heavily in its run, sneaker and apparel businesses Ministry of Sport.
Americas Slowdown Clouds Near-Term Outlook
On Holding reported second-quarter sales below estimates amid slowing growth in the Americas and a difficult macroeconomic environment Simply Wall St. The company acknowledged regional headwinds but believes it can still exceed its 2023 investor day targets company-wide Yahoo Finance. Direct-to-consumer strength outside the Americas helps offset the weakness.
The company named Electronic Arts executive Laura Miele as its lead independent director, signaling a focus on operational discipline and growth management Yahoo Finance. On remains confident in its long-term strategy despite near-term regional challenges.
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