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Finance

Sportswear brand On expects higher profit margin after strong quarterly sales

Published by Global Banking & Finance Review

Posted on November 10, 2026

2 min read

· Last updated: November 10, 2026

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On Expects Higher Profit Margin After Strong Quarterly Sales Performance

On's Financial Growth and Strategic Initiatives

Quarterly Sales Performance and Margin Forecast

Nov 10 (Reuters) - Sportswear brand On raised its annual gross margin forecast after beating third-quarter sales estimates on Tuesday, as new product launches and celebrity collaboration efforts drove demand across its premium shoes and apparel collections.

Market Expansion and Competitive Position

The company has grown fast and expanded its store footprint globally, taking market share from bigger rivals such as Nike and Adidas.

Strategic Investments and Partnerships

Share Buyback Program

On, which authorized its first share buyback plan up to $1 billion through the end of 2029 in September, recently entered into soccer, the world's most popular sport, by signing French star Kylian Mbappe.

Updated Profit Margin Outlook

It now expects fiscal 2026 gross profit margin to be around 67.5%, or about 66%, excluding US tariff refunds, compared with previous forecast of at least 65%.

Financial Results and Analyst Estimates

The Swiss company posted third-quarter sales of 931.4 million Swiss francs ($1.14 billion), compared with analysts' estimates of 929.3 million Swiss francs, according to data compiled by LSEG.

($1 = 0.8192 Swiss francs)

Reporting Credits

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini Ganguli)

Key Takeaways

  • On’s Q3 sales reached CHF 931.4 million, slightly above the CHF 929.3 million forecast, prompting management to lift its gross margin guidance to ~67.5% (or c. 66% excluding U.S. tariff refunds) (press.on-running.com).
  • The margin upgrade follows earlier profitability gains in Q1–Q2, strong DTC performance, new product launches (e.g. Cloudtilt, SURREAL‑foam Cloudsurfer 3) and full‑price discipline (investors.on-running.com).
  • On’s entry into soccer—with signing Kylian Mbappé and naming Thierry Henry as Director of Football—marks a strategic expansion beyond running into the world’s largest sport, raising its cultural and competitive profile (press.on-running.com).

References

Frequently Asked Questions

What helped drive On's strong quarterly sales?
New product launches and celebrity collaborations, including a partnership with Kylian Mbappe, drove demand.
What were On's third-quarter sales?
On posted third-quarter sales of 931.4 million Swiss francs ($1.14 billion), beating analysts' estimates.
Has On implemented a share buyback plan?
Yes, On authorized its first share buyback plan of up to $1 billion through the end of 2029.
Which major sportswear rivals is On competing with?
On is taking market share from bigger rivals such as Nike and Adidas.

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