Published by Global Banking & Finance Review®
Posted on March 3, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleSwiss sportswear maker On Holding sees upside from potential U.S. tariff cuts after the Supreme Court invalidated emergency levies, and delivered strong Q4 results with 22.6% sales growth, forecasting 23% constant‑currency growth in 2026.
By Helen Reid and Neil J Kanatt
March 3 (Reuters) - On Holding CEO Martin Hoffmann expects a possible boost from lower U.S. tariff rates after the Supreme Court struck down the government's emergency levies, as the Swiss sportswear brand offered a cautious sales outlook for the year on Tuesday.
Shares of the company tumbled as much as 14% after it forecast at least 23% annual sales growth on a constant-currency basis, moderating from 30% in 2025, although ahead of larger rivals Nike and Adidas.
"For a company that has struggled to combat a deceleration narrative, (the sales forecast) sets management back a step," William Blair analysts said in a note. Guggenheim's Simeon Siegel also sees the forecast as conservative.
On expects its annual gross margin to rise to at least 63%, up from 62.8% in 2025, with the outlook not yet reflecting any benefit from lower tariffs.
The U.S., On's biggest market, began collecting a temporary 10% blanket tariff on imports last week, with the administration planning to lift it to 15%. Even at that level, the rate would be well below the additional 20% duty imposed last year on countries such as Vietnam and Indonesia, where On sources much of its production.
"If we see 15% becoming the new reality, this would be an additional upside to the guidance that we gave," Hoffmann told Reuters.
On has also filed for tariff refunds and would reinvest any proceeds in the business rather than pass them on to consumers, Hoffman said.
Separately on Tuesday, electronics retailer Best Buy, too, signaled a lower U.S. tariff rate, but said it has not modeled "major impacts" from the change in its forecast.
On's fourth-quarter sales rose 22.6% to 743.8 million Swiss francs ($949.69 million), beating analysts' expectations of 724.3 million francs, helped by limited discounting during the holiday season. Adjusted core earnings rose 31.8% to 131 million francs.
On's emphasis on affluent consumers has supported its performance, in contrast to brands targeting lower-income shoppers, who have pulled back spending in an increasingly polarized economy, especially in the U.S.
"The strong product pipeline that we have, the innovation that we bring to the market, and that premium position is really building momentum globally, and is resonating with the customer globally," Hoffmann said, adding the brand plans 10 to 15 store openings this year.
($1 = 0.7832 Swiss francs)
(Reporting by Neil J Kanatt in Bengaluru and Helen Reid in Paris; Editing by Shilpi Majumdar and Krishna Chandra Eluri)
Lower US tariff rates could provide a financial boost to On Holding by improving profit margins and enhancing sales outlook in its biggest market.
The company expects its annual profit margin to increase to at least 63% from 62.8% in 2025, without yet factoring in lower US tariffs.
On Holding reported a 22.6% rise in fourth-quarter sales to 743.8 million Swiss francs and a 31.8% increase in adjusted EBITDA.
On Holding’s CEO stated that any tariff refunds received would be reinvested in the business rather than passed on to consumers.
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