--- title: "On Holding AG Shines With Record Growth and Margins" type: "News" locale: "en" url: "https://longbridge.com/en/news/286179230.md" description: "On Holding AG reported record Q1 earnings with net sales surpassing CHF 800 million, driven by strong demand in both direct-to-consumer and wholesale channels. The company achieved a gross profit margin of 64.2% and an adjusted EBITDA margin of 21.0%. Despite challenges from foreign exchange and tariffs, management remains optimistic about growth, particularly in the Asia Pacific and Americas regions. The transition in leadership and ongoing investments in marketing and technology are noted as key factors for future performance." datetime: "2026-05-13T00:44:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286179230.md) - [en](https://longbridge.com/en/news/286179230.md) - [zh-HK](https://longbridge.com/zh-HK/news/286179230.md) --- # On Holding AG Shines With Record Growth and Margins On Holding Ag Class A ((ONON)) has held its Q1 earnings call. Read on for the main highlights of the call. ### Claim 55% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks On Holding AG’s latest earnings call struck a decidedly upbeat tone, with management emphasizing broad‑based growth, record profitability and strong brand momentum. Executives acknowledged headwinds from foreign exchange, tariffs and a leadership transition, but framed them as manageable against powerful demand, expanding margins and a cash-rich balance sheet. ## Record Net Sales Break CHF 800 Million Barrier Net sales climbed to a record CHF 831.9 million, marking the first quarter above the CHF 800 million mark. At constant currency, revenue grew 26.4% year on year, while reported growth of 14.5% underscored the drag from foreign exchange. ## D2C Channel Delivers Strong, Strategic Growth Direct-to-consumer net sales reached CHF 322.3 million, up 28.7% at constant currency and 16.4% reported. Management stressed sustained D2C momentum and reiterated a multi‑year plan to increase D2C’s share of the business to deepen customer relationships and protect pricing. ## Wholesale Surpasses Half-Billion for the Quarter Wholesale sales topped CHF 0.5 billion for the first time, reaching CHF 509.6 million. Growth of 25.1% at constant currency, or 13.3% reported, highlights robust retailer demand even as management plans a more measured cadence to keep inventories clean. ## APAC Surge and Americas Record Fuel Global Reach Asia Pacific net sales hit CHF 174.0 million, soaring 61.4% at constant currency and now accounting for more than 20% of total sales. The Americas delivered a record CHF 450.7 million, up 17.1% at constant currency but only 3.1% reported, as brand awareness in the region crossed 30%. ## Footwear Strength and Accelerating Apparel Mix Shoes remained the core engine with CHF 763.7 million in sales, up 24% at constant currency. Apparel accelerated sharply to CHF 55.3 million, up 57.5% at constant currency, and for the first time contributed more than 10% of D2C sales, signaling successful cross‑category expansion. ## Margins Reach New Highs as Profitability Scales Gross profit margin rose to 64.2%, up from 59.9% a year earlier, reflecting favorable mix, pricing and efficiency gains. Adjusted EBITDA margin improved 450 basis points to 21.0%, giving management confidence to target at least 64.5% gross margin and 19.5%–20% adjusted EBITDA margin for the year. ## Innovation Pipeline Powers Product Momentum The company highlighted strong traction for its LightSpray technology, with capacity at the Busan facility expanded roughly 30-fold to meet demand. New products like the LightSpray Cloudmonster Hyper, Cloudmonster 3, SuperFoam-based models and the Cloudtilt line are driving premium sell‑through and fueling brand buzz. ## Balance Sheet Strength and Efficiency Gains Stand Out On Holding ended the quarter with more than CHF 1 billion in cash, providing flexibility amid macro and tariff uncertainty. Distribution expense fell to 10% of net sales and G&A to 16%, the lowest in two years, helped by scale benefits and warehouse automation. ## FX Headwinds Blur Underlying Growth Picture Management repeatedly flagged foreign exchange as a key headwind distorting reported growth versus constant currency metrics. Examples included Americas revenue up 17.1% at constant currency but only 3.1% reported, and total net sales growth of 14.5% reported versus 26.4% at constant currency. ## Tariffs and Cost Inflation Weighed into Margin Plans Higher U.S. tariffs and assumed incremental rates from Vietnam are built into the company’s outlook. Guidance assumes a 20% incremental tariff rate from Vietnam, with management stressing that pricing, sourcing and margin plans all factor in this cost pressure. ## Leadership Transition Adds Execution Watchpoint The transition from outgoing CEO/CFO Martin Hoffmann to newly appointed CFO Frank Sluis and the founders’ return to co‑CEO roles introduces some execution risk. Management framed the move as continuity, but investors will be watching closely to ensure the growth and margin trajectory is maintained. ## Wholesale Cadence and Inventory Stayed Disciplined Executives signaled that wholesale growth could moderate at times as the company prioritizes entering new fall and winter seasons with clean inventory. Guidance assumes this more controlled wholesale cadence, while expecting D2C to continue outperforming as the brand leans into its own channels. ## Brand Building Spend Set to Stay Elevated Marketing expense is expected to run around 13%–13.5% of sales this year as the company invests heavily in awareness and new customer cohorts. Management sees these higher near‑term costs as strategic, aimed at supporting global growth and deepening engagement despite the drag on near‑term earnings. ## Scaling New Technologies Carries Early-Stage Risk While LightSpray and other new technologies show strong early demand, management described this as just the starting line of commercialization. Scaling production and distribution at pace with demand remains a key execution risk, even as capacity expansion and sell‑outs point to a promising runway. ## Guidance Signals Confidence Despite Known Headwinds The company reiterated full‑year guidance for at least 23% constant‑currency net sales growth, implying roughly CHF 3.5 billion in revenue at current rates. Management also guided to a gross margin of at least 64.5% and adjusted EBITDA margin of 19.5%–20%, assuming elevated marketing, tariff headwinds, strong D2C and continued outperformance in APAC and apparel. On Holding’s call painted the picture of a premium brand scaling fast with improving profitability and ample balance sheet firepower. While FX, tariffs, leadership changes and early-stage tech risks warrant monitoring, the combination of strong demand, disciplined execution and reaffirmed guidance left a broadly optimistic takeaway for investors. ### Related Stocks - [ONON.US](https://longbridge.com/en/quote/ONON.US.md) ## Related News & Research - [On Holding AG Just Beat EPS By 40%: Here's What Analysts Think Will Happen Next](https://longbridge.com/en/news/286579607.md) - [Swiss Sneaker Maker On Defies Tariffs With Full-Price Strength](https://longbridge.com/en/news/286104278.md) - [Examining options for FX hedging](https://longbridge.com/en/news/286789264.md) - [On Holding Insiders Purchased Shares Worth Over $6.6M](https://longbridge.com/en/news/286571784.md) - [How to Read the COT Report to Track Forex Market Sentiment](https://longbridge.com/en/news/286848676.md)