Company Reports

On Holding held an investor day at which it laid out its roadmap for the next three years in terms of marketing, product development (including new categories), and channel growth. Its 2029 financial targets include CHF 5.6 billion in sales, a 65% gross margin, and a 22% EBITDA margin.

We rate On Holding as a narrow-moat company based on its brand intangible asset. The company has established itself in the running footwear category with its signature CloudTec soles.

We rate On as a narrow-moat company based on its brand intangible asset. The company has established itself in the running footwear category with its signature CloudTec soles.

On's second-quarter sales increased 13.5% (21.6% in constant currency). Gross margin rose 390 basis points to 65.4% and adjusted EBITDA margin increased 160 basis points to 19.8%. Adjusted earnings per share improved to a CHF 0.35 gain from a CHF 0.09 loss.

We rate On as a narrow-moat company based on its brand intangible asset. The company has established itself in the running footwear category with its signature CloudTec soles.

On Holding achieved 14.5% sales growth, a 64.2% gross margin (up from 59.9% last year), and a 21% adjusted EBITDA margin (up from 16.5%). On a constant-currency basis, its sales grew 26.4% on roughly even increases from its wholesale (61% of total) and direct-to-consumer (39%) channels.

On announced that CEO and Chief Financial Officer Martin Hoffmann will step down on May 1 and that two of its co-founders, David Allemann and Caspar Coppetti, will become co-CEOs. Current operations executive Scott Maguire has been promoted to president and chief operating officer.

We rate On as a narrow-moat company based on its brand intangible asset. The company has established itself in the running footwear category with its signature CloudTec soles.

On Holding's fourth-quarter sales grew 23% on increases of 24%, 13%, and 71% in EMEA (25% of total), the Americas (58%), and Asia-Pacific (17%), respectively. The firm's gross margin rose 180 basis points to 63.9%, and its adjusted EBITDA margin improved 120 basis points to 17.6%.

On Holding has been the fastest-growing sportswear company in the world since the pandemic as its footwear with CloudTec cushioning has caught on in multiple markets. Over six years, the firm has achieved 50% annual sales growth and lifted its adjusted EBITDA margin to 17% from 12%.

We rate On as a narrow-moat company based on its brand intangible asset. The company has established itself in the running footwear category with its signature CloudTec soles.