Running shoe maker On drops as guidance underwhelms after record 2025

3rd Mar 2026 11:20

(Sharecast News) - Shares in On Holding dropped sharply on Tuesday after the Swiss premium running shoes and apparel brand disappointed investors with its current-year sales guidance following a record 2025 which exceeded its outlook across all metrics.

The company said it expects net sales to grow by "at least 23%" in 2026 on a constant currency, implying a top-line figure at least CHF3.44bn, with an adjusted EBITDA margin of between 18.5% and 19.0%.

The current consensus forecast for net sales was closer to CHF3.67bn. The stock was down 11.1% at $41.55 by 1255 GMT in pre-market trading on Wall Street.

Sales across the fourth quarter rose 22.6% year-on-year to CHF743.8m, up 30.6% at constant FX, which the firm put down to improved brand awareness and "disciplined premium execution" during the key holiday sales season.

The adjusted EBITDA margin was 120 basis points higher than last year at 17.6% in the fourth quarter, while the gross profit margin rose 180bp to a record 63.9%.

That meant full-year sales rose 35.6% at constant currency to CHF3.01bn, topping the CHF3bn mark for the first time, while the annual adjusted EBITDA margin reached 18.8%. Gross profit for the year was up 34.7% at CHF1.89bn.

"Surpassing the CHF 3 billion annual revenue milestone with record profitability is a profound validation of our vision to build the world's most premium global sportswear brand," said co-founder and executive co-chair David Allemann.

"We are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity, and performance."