On Holding AG Ltd. experienced a significant share price increase on Tuesday, closing at $29.39 after the company unveiled a $1 billion buyback initiative spanning three years. The repurchase program, which will focus exclusively on Class A ordinary shares, was presented as a reflection of the company’s robust financial position and commitment to returning value to shareholders.
At its Investor Day event, the company lifted its long-term growth projections through 2029, projecting net sales to expand at a high-teens rate on a constant currency basis. Management targeted absolute net sales of at least CHF 5.6 billion, equivalent to approximately $7 billion at prevailing exchange rates, with a gross profit margin of 65 percent and an adjusted EBITDA margin of 22 percent. For the current year, the company reaffirmed its full-year net sales growth guidance of low 20 percent on a constant currency basis, along with a 65 percent gross profit margin and an adjusted EBITDA margin between 19.5 and 20 percent. The projections exclude approximately $65 million in anticipated tariff refunds expected during the third quarter.
Founder and co-CEO Caspar Coppetti highlighted the company’s trajectory relative to previous targets, noting that it was positioned to significantly exceed objectives established at the prior Investor Day. He emphasized the company’s premium positioning strategy through 2029 and outlined the complementary relationship between top-line growth and margin expansion within its operational framework.
Second-quarter results demonstrated substantial operational progress, with the company swinging to a net income of CHF 105 million compared to a net loss of CHF 40.9 million in the corresponding prior-year period. Net sales climbed 13.5 percent to CHF 850.3 million, driven by a 26 percent increase in direct-to-consumer channel revenue and a 47.7 percent surge in apparel segment sales. Institutional investor interest intensified during the period, with hedge fund holdings increasing to $2.3 billion from $1.4 billion sequentially, while the number of hedge funds maintaining positions rose to 54 from 52.
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