On Holding AG 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- On Holding AG reported Q2 2026 net sales of 850 million CHF, a 22% growth at constant currency and 13.5% reported basis.
- Direct-to-consumer (DTC) sales reached 388 million CHF, up 34.3% at constant currency and 26.0% reported, representing 45.7% of total sales, driven by strong e-commerce and retail performance globally.
- Wholesale sales grew 12.7% at constant currency and 4.8% reported, with softer sell-through in everyday running franchises in the Americas due to a promotional multi-brand environment.
- Gross profit margin was 65.4% and adjusted EBITDA margin close to 20%, with adjusted EBITDA growing over 30% year over year at constant currency.
- Regional sales growth included Americas at 13.0% constant currency, EMEA at 20.5% constant currency, and APAC at 54.7% constant currency, with strong performances in Japan, Korea, Greater China, and new store openings.
- Apparel sales grew 56.2% at constant currency and 47.7% reported, with tennis apparel nearly tripling sales this quarter.
- The company highlighted innovation launches such as the Cloud Boom Strike two marathon shoe, Cloud Monster three hyper, Cloud Server three with surreal foam technology, and the Cloud X5 with Clean Cloud midsole made using captured carbon emissions.
- On's direct-to-consumer channel attracted a younger consumer base, with over one third under age 34, fueling significant growth in the cloud-filled franchise (190% year over year).
- The company opened new flagship stores in Paris, Stockholm, Tokyo, Macau, United Arab Emirates, Copenhagen, and Sao Paulo.
- Management changes included Rebecca Kay promoted to Chief Global Markets Officer and Alice Delahunt appointed Chief Customer Officer.
- Cash balance increased by 185.2 million CHF to over 1.2 billion CHF net cash, with capital expenditure of 28.2 million CHF focused on retail expansion and infrastructure.
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Transcript
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Hello, everyone. Thank you for joining us, and welcome to the On Holding AG Second Quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Liv Radlinger, Head of Investor Relations.
Liv, please go ahead. Good afternoon and good morning to our investor community.
Thank you for joining On's second quarter earnings conference call and webcast. With me today on the call are David Allemann, founder and Co-CEO, and Frank Sluis, CFO. Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the Federal Securities laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our annual report on Form 20-F for the 2025 fiscal year, filed with the SEC on 3 March 2026 for a detailed discussion of such risks and uncertainties. We will further reference certain non-IFRS financial measures such as adjusted EBITDA and adjusted EBITDA margin.
These measures are not intended to be considered in isolation or as a substitute for the financial information presented in accordance with IFRS accounting standards. Please refer to today's release for a reconciliation to the most comparable IFRS measures. We will begin with David, followed by Frank, leading through today's prepared remarks, after which we are looking forward to opening the call for a Q&A session. With that, I'm very happy to turn the call over to David.
Good afternoon and good morning to our global investor community. Thank you so much for joining us today. When we started On 16 years ago, we were told that the sportswear industry operated on a rigid set of rules, standard molds, standard distribution, and standard ways of doing business. We politely chose to carve our own path. When told it was physically impossible to put holes into the rubber sole of a running shoe, I took those industry-stranded molds and broke them. This is how CloudTec was born. That single act of defiance forged our permanent innovation culture. At On, we are reinventing the mold again and again because it is the only way to build a premium global sports brand that will prevail for decades. Stepping into the roles of Co-CEOs just over 12 weeks ago is a strategic commitment to our founder-led DNA.
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