On Holding AG Ltd. shares gained 7.58 percent on Tuesday, closing at $29.39 apiece, following announcements made at the company’s Investor Day event. The company outlined a $1 billion share repurchase program spanning three years, focused on Class A ordinary shares, which executives framed as reflecting confidence in the firm’s financial position and commitment to shareholder returns.
The company lifted its growth outlook through 2029, projecting net sales to expand at high teens rates on a constant currency basis. Absolute net sales are expected to reach at least CHF 5.6 billion or $7 billion at prevailing exchange rates, with gross profit margin targeted at 65 percent and adjusted EBITDA margin at 22 percent. 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 and adjusted EBITDA margin between 19.5 percent and 20 percent. The company noted anticipated receipt of $65 million in tariff refunds during the third quarter.
Founder and co-CEO Caspar Coppetti emphasized the company’s trajectory, stating it is on track to significantly exceed targets set at the previous Investor Day. He highlighted the company’s “Premium Playbook” strategy, describing how top-line and margin expansion operate as complementary objectives rather than competing priorities.
Second-quarter results showed improved profitability, with net income reaching CHF 105 million compared to a net loss of CHF 40.9 million in the same quarter the previous year. Net sales increased 13.5 percent to CHF 850.3 million from CHF 749.2 million year-on-year, driven by strong direct-to-consumer channel growth of 26 percent and a 47.7 percent increase in apparel segment sales. Institutional investor interest strengthened, with hedge fund holdings growing to $2.3 billion from $1.4 billion quarter-on-quarter, as the number of hedge funds holding positions rose to 54 from 52.
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