On Holding Boosts 2026 Profit Margin Outlook on Strong Q1 Sales Beat
Summary
Sportswear brand On Holding AG (ONON) has raised its operating profit margin forecast for 2026 to 19.5%-20% from the previous 18.5%-19%, and its gross profit margin to at least 64.5%. This positive revision follows strong first-quarter sales of 831.9 million Swiss francs ($1.07 billion), which surpassed analyst expectations. The company attributes this performance to successful new sneaker launches and a strategy targeting younger, female consumers, including a clothing range with brand ambassador Zendaya. While sales growth in the Americas was modest due to a strong Swiss franc, Asia-Pacific showed robust growth. This improved outlook on profitability and better-than-expected sales are significant for the stock, indicating strong operational execution and market traction. The news is entirely focused on On Holding AG; the ticker ON (ON Semiconductor Corporation) is not relevant to this development. Investors will watch for continued expansion in target demographics and regional sales performance.
At the time of this announcement, ONON was trading at $34.16 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.3B. The 52-week trading range was $31.41 to $61.29. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.