Switzerland's On Holding beats Q4 revenue estimates as rising brand awareness pays off

Overview

• Swiss sportswear brand's Q4 revenue rose 22.6% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q4 beat consensus, driven by strategic execution

• Company's gross profit margin reached 63.9%, a new Q4 record

Outlook

• On Holding expects 2026 net sales to grow by at least 23% on a constant currency basis

• Company anticipates 2026 reported net sales of at least CHF 3.44 bln

• On Holding projects 2026 gross profit margin of at least 63.0%

• Company forecasts 2026 adjusted EBITDA margin between 18.5% and 19.0%

Result Drivers

• BRAND AWARENESS - Increasing global brand awareness approaching 30% drove strong performance across DTC and Wholesale channels

• RETAIL EXPANSION - Expansion to nearly 70 own retail locations deepened consumer engagement and supported growth

• OPERATIONAL EFFICIENCIES - Structural operational efficiencies and favorable foreign exchange dynamics boosted Q4 gross profit margin to 63.9%

Company press release: ID:nBwbsDlYMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the footwear peer group is "buy"

• Wall Street's median 12-month price target for On Holding Ltd is $60.95, about 30.3% above its March 2 closing price of $46.76

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 28 three months ago

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