Athletic brand On sees higher 2026 profit as it attracts younger, female customers

Sportswear brand On Holding AG, listed as ONON.N49G.BN, raised its profit margin forecast on Tuesday after posting stronger-than-expected first-quarter sales, as the Swiss company continues to gain ground in the global sneaker and running shoe market long dominated by Nike and Adidas.

The company, backed by 29-year-old actress Zendaya as a brand ambassador, is targeting younger and more female consumers. Co-CEO Caspar Coppetti said On’s clothing line launched with Zendaya in April is already showing strong performance in the market.

First-quarter sales rose 14.5% to 831.9 million Swiss francs ($1.07 billion), surpassing analysts’ expectations of 822.5 million francs, according to data from LSEG.

On now expects an operating profit margin of 19.5% to 20% for 2026, up from its previous forecast of 18.5% to 19%. It also projected a gross profit margin of at least 64.5%.

Coppetti said improved profitability was driven by successful new product launches. He highlighted the Cloudtilt sneaker, which retails for 190 euros, as the best-selling shoe at Foot Locker Europe in March.

However, currency headwinds weighed on performance in the Americas, On’s largest market by revenue. Sales in the region grew just 3.1%, compared with a 32.7% increase a year earlier. In contrast, the Asia-Pacific region delivered the strongest growth, surging 44.4%.

The company has also undergone leadership changes, with co-founders David Allemann and Caspar Coppetti stepping in as joint chief executives on May 1, replacing Martin Hoffmann. Frank Sluis, formerly of supermarket group Ahold Delhaize, joined as chief financial officer at the same time.

“We’re very happy to have found, with Frank Sluis, someone who comes from a nearly $100 billion revenue company and can help us unlock economies of scale,” Coppetti said.

($1 = 0.7797 Swiss francs)

-Reporting by Helen Reid in London and Juveria Tabassum in Bengaluru; Editing by Louise Heavens/Reuters