On Holding EMEA Sales Rise 15.4% as Premium Brand Strategy Holds

Zacks Investment Research·21 Sep 2026·

3▲0 ▼0Impact / 5

Earnings Textiles, Apparel & Luxury Goods

Summary · why it matters

On Holding AG reported second-quarter 2026 EMEA net sales up 15.4% year over year to CHF 228.2 million, or 20.5% at constant currency, with the region accounting for 26.8% of net sales, up from 26.4% a year earlier. Globally, direct-to-consumer net sales rose 26% to CHF 388.4 million, or 34.3% at constant currency, lifting DTC's share of quarterly sales to 45.7% from 41.1%, while gross margin expanded 390 basis points to 65.4%. Management said the Champs-Elysees flagship was the company's strongest-performing store globally in the quarter and its Stockholm flagship performed at twice the expected level after two months, while Cloudtilt models took three of Foot Locker Europe's top five selling positions. For 2026, On Holding expects constant-currency sales growth in the low-20% range, with DTC strongly outperforming wholesale in the second half, and raised its gross-margin outlook to at least 65% while maintaining an adjusted EBITDA margin target of 19.5-20%. On Holding shares have lost 24.7% over the past three months compared with the industry's 15.8% decline, and the stock carries a Zacks Rank #5 (Strong Sell).