On Holding AG announced a $1 billion share buyback program over the next three years at its Investor Day, sending its shares up 7.58 percent to close at $29.39 on Tuesday. The repurchase, which covers only Class A ordinary shares, reflects the company's strong balance sheet and its push to return more value to shareholders. The company also raised its growth outlook through 2029, targeting high-teens net sales growth on a constant currency basis, with absolute net sales projected to reach at least CHF 5.6 billion, or $7 billion at current exchange rates, a gross profit margin of 65 percent and an adjusted EBITDA margin of 22 percent. For this year, On Holding reaffirmed its full-year 2026 net sales growth outlook of low 20 percent on a constant currency basis, a gross profit margin of 65 percent and an adjusted EBITDA margin of 19.5 percent to 20 percent, figures that exclude an expected $65 million in tariff refunds targeted for the third quarter. Founder and co-CEO Caspar Coppetti said the company is on track to significantly overachieve the targets it gave at its last Investor Day in 2023, committing to premium as its north star through 2029. In the second quarter, On Holding swung to a net income of CHF 105 million from a net loss of CHF 40.9 million a year earlier, as net sales rose 13.5 percent to CHF 850.3 million from CHF 749.2 million, helped by a 26 percent gain in direct-to-consumer and a 47.7 percent jump in apparel sales.
On Holding LtdOn Holding announced a $1 billion share buyback program over three years, returning value to shareholders.
