On Holding AG Ltd. announced a $1 billion repurchase program spanning three years during its Investor Day presentation, focusing exclusively on Class A ordinary shares. The initiative reflects confidence in the company’s financial position and represents part of a broader effort to enhance shareholder returns.
The athletic footwear and apparel company raised its medium-term growth outlook through 2029, targeting net sales growth in the high teens on a constant currency basis. Absolute net sales are projected to reach at least CHF 5.6 billion, equivalent to $7 billion at prevailing exchange rates, with a gross profit margin anticipated at 65 percent and adjusted EBITDA margin at 22 percent.
For the current year, On Holding reaffirmed its full-year net sales growth guidance of low 20 percent on a constant currency basis, maintaining gross profit margin expectations of 65 percent and adjusted EBITDA margin in the range of 19.5 to 20 percent. The company expects to receive approximately $65 million in tariff refunds during the third quarter. Founder and co-CEO Caspar Coppetti stated the company is positioned to significantly exceed targets established at its previous Investor Day gathering, emphasizing a long-term strategic focus on premium positioning.
Second quarter results demonstrated operational momentum, with the company recording a net income of CHF 105 million compared to a net loss of CHF 40.9 million in the prior-year period. Net sales increased 13.5 percent to CHF 850.3 million, driven by a 26 percent surge in direct-to-consumer channel sales and a 47.7 percent increase in apparel segment revenue. The stock gained 7.58 percent to close at $29.39 on the announcements, while institutional investor interest intensified, with 54 hedge funds holding positions valued at $2.3 billion, up from 52 funds with $1.4 billion in combined holdings the previous quarter.
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