CEO Caspar Coppetti called the Cloudsurfer 3 the first proof point of On’s biggest innovation cycle, while highlighting the growth of its Cloudtilt sneaker franchise and the visibility of its latest Zendaya collection.

  • The company reported Q3 net sales of CHF 931.4 million, up 17.2% year-over-year (17.8% on a constant-currency basis), broadly in line with Fiscal.ai estimates of CHF 931.58 million.
  • On maintained its FY2026 net sales growth outlook in the low-20% range on a constant-currency basis.
  • The company raised its full-year gross margin outlook to around 66% excluding U.S. tariff refunds, from at least 65% previously.

On Holding (ONON) shares fell 4.5% in premarket trading at the time of writing on Tuesday, despite the Swiss sportswear company reporting record quarterly sales and raising its full-year gross margin outlook. However, the company left its full-year revenue growth forecast unchanged.

The company reported third-quarter net sales of CHF 931.4 million ($1.14 billion), up 17.2% year-over-year, or 17.8% on a constant-currency basis. Revenue was essentially in line with analyst expectations of CHF 931.58 million, according to Fiscal.AI.

Direct-to-consumer sales increased 25% to CHF 393.3 million, while apparel sales climbed 38.7% to CHF 69.5 million. Net income rose 36.9% to CHF 162.8 million, and diluted earnings per share increased to CHF 0.48 from CHF 0.36 a year earlier.

Management Sees Q4 Growth Acceleration

On maintained its full-year 2026 net sales growth outlook in the low-20% range on a constant-currency basis, implying revenue of CHF 3.47 billion to CHF 3.56 billion at current exchange rates.

The company said it expects fourth-quarter sales growth to accelerate as its holiday campaign gains traction and new products reach consumers. However, it also plans to maintain its premium positioning and full-price discipline despite a promotional retail environment.

Founder and Co-CEO Caspar Coppetti called the Cloudsurfer 3 the “first proof point” of the company's biggest innovation cycle. On also described its Cloudtilt sneaker as one of the industry's fastest-growing franchises and said its latest Zendaya collection became its most visible apparel launch yet.

Margin Guidance Raised, But Tariff Refunds Boost Q3 Results

On raised its full-year gross margin outlook to around 66% excluding U.S. tariff refunds, up from its previous forecast of at least 65%. Including the refunds, it expects a margin of approximately 67.5%.

Third-quarter gross margin reached 72.6%, but included CHF 52.6 million in U.S. tariff refunds. Excluding those refunds, gross margin was 66.9%. On said gross margin increased by around 320 basis points year-over-year after adjusting for the tariff refunds and a one-time benefit from lower freight and other costs in the prior-year period.

The company maintained its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin outlook at 21%-21.5%, or 19.5%-20% excluding tariff refunds.

How Retail Views ONON

On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘neutral,’ amid ‘high’ message volumes in the past 24 hours. ONON was also one of the platform's trending tickers at the time of writing.

ONON shares have dropped around 19% year-to-date.

Also read: CAPR Stock Edges Higher Ahead Of Q3 Earnings, But Retail’s Attention Remains Firmly Fixed On Nov. 22 FDA Decision For Deramiocel

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

(Exchange Rate: 1 CHF = approximately $1.22 USD)