Key Highlights
ONON shares surged over 12% following On Holding’s Investor Day presentation on Tuesday
Swiss athletic brand unveiled its inaugural $1 billion share buyback initiative
Company projects net revenue of minimum 5.6 billion Swiss francs by fiscal 2029
Management sets ambitious gross profit margin objective of at least 65% extending through 2029, significantly exceeding Nike’s 43%
Strategic expansion includes entry into soccer and golf markets, with Kylian Mbappé joining as global football brand ambassador
Shares of On Holding rallied more than 12% during Tuesday’s trading session after the premium Swiss athletic footwear and apparel maker conducted its highly anticipated Investor Day presentation, where management unveiled a comprehensive strategic and financial blueprint extending through 2029, highlighted by the company’s inaugural $1 billion share repurchase authorization.
ONON shares began premarket trading with a 5.86% gain at $28.92 before momentum accelerated throughout the session, pushing the stock beyond 12% to reach $30.63. Trading volume surged to 20.7 million shares, nearly tripling the typical daily average of 7.1 million.
After declining approximately one-third of its value year-to-date, Tuesday’s substantial rally has market participants questioning whether the stock has finally found a bottom.
Management projects net revenue will achieve a minimum of 5.6 billion Swiss francs by the end of 2029, translating to approximately $7 billion based on prevailing currency exchange rates. The athletic brand anticipates delivering a high-teens constant-currency revenue compound annual growth rate spanning 2026 through 2029.
Looking specifically at fiscal 2026, On reaffirmed its previous outlook calling for constant-currency net revenue expansion in the low-20% range.
Profitability Metrics Catch Attention
Among the most compelling announcements from the Investor Day event was On’s aggressive profitability framework. Management established a gross profit margin target of at least 65% extending through 2029, complemented by an adjusted EBITDA margin objective of minimum 22% by the same year.
The projected adjusted EBITDA compound annual growth rate is anticipated to exceed 20% throughout the 2026-2029 timeframe.
For perspective on these margin projections, Nike’s latest annual gross profit margin registers approximately 43%. On clearly operates within a distinctly premium category.
Co-Chief Executive Officer David Allemann emphasized that the company’s Premium Playbook strategy effectively bridges innovation occurring at its Zurich research and development facilities with consumers who embrace athletic footwear and apparel as integral lifestyle components.
Co-CEO Caspar Coppetti noted that On remains positioned to surpass the financial objectives established during its 2023 Investor Day presentation.
Historic Buyback Program and Category Expansion
The company’s board of directors approved On’s maiden share repurchase program, granting authorization to acquire up to $1 billion worth of Class A ordinary shares through December 2029.
For the third quarter of 2026, On provided guidance calling for constant-currency revenue growth of approximately 17%.
Expanding beyond its established presence in running footwear and tennis, On is pursuing strategic entries into soccer and golf categories. The brand recently announced French football superstar Kylian Mbappé as its global ambassador spearheading its soccer market expansion.
On presently maintains a market capitalization near $9 billion, with shares trading within a 52-week range spanning $26.36 to $51.08.
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