On Holding AG Ltd. stock jumped 7.58 percent on Tuesday, closing at $29.39 per share following the company’s Investor Day announcements. The athletic footwear and apparel manufacturer unveiled a $1 billion share repurchase program to be executed over the next three years, involving only Class A ordinary shares. The company characterized the buyback as evidence of financial strength and a mechanism to increase shareholder returns.
The company lifted its medium-term guidance during the investor event. Through 2029, On Holding projects net sales growth in the high teens range on a constant currency basis, with absolute net sales targets of at least CHF 5.6 billion or approximately $7 billion at current exchange rates. The company expects to maintain a gross profit margin of 65 percent and achieve an adjusted EBITDA margin of 22 percent by the end of that period.
For the current year, On Holding reaffirmed its full-year net sales growth outlook of low 20 percent on a constant currency basis, along with a 65 percent gross profit margin. The company guided for adjusted EBITDA margin between 19.5 percent and 20 percent, excluding an anticipated $65 million in tariff refunds expected in the third quarter. Founder and co-CEO Caspar Coppetti stated the company was outperforming targets set at its previous Investor Day and emphasized commitment to a premium-focused business strategy through 2029.
Second-quarter results provided support for the optimistic outlook. The company swung to net income of CHF 105 million compared with a net loss of CHF 40.9 million in the same quarter of the prior year. Net sales increased 13.5 percent year-over-year to CHF 850.3 million, driven by a 26 percent surge in direct-to-consumer channel sales and a 47.7 percent jump in apparel segment revenue. Institutional investor interest strengthened, with the number of hedge funds holding positions rising to 54 from 52 the previous quarter, and their combined holdings increasing to $2.3 billion from $1.4 billion.
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