On Holding LtdONON
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On raised 2026 gross margin outlook and reported strong Q2 results with margin expansion.
Impact on stocks 3
Consumer Discretionary
On Holding Raises 2026 Margin Outlook Amid Tariff Risks
Earnings
On Holding AG raised its 2026 gross-margin outlook to at least 65% from at least 64.5%, citing a richer direct-to-consumer mix and operating efficiencies, even as new U.S. tariffs and wholesale restraint pose risks. The company reported second-quarter constant-currency sales growth of 21.6% and gross margin expansion of 390 basis points to 65.4%, with adjusted EBITDA margin rising to 19.8% from 18.2%. Direct-to-consumer sales grew 34.3% at constant currency, reaching 45.7% of net sales, up from 41.1% a year earlier, while wholesale grew only 12.7%. Management expects full-year 2026 constant-currency net sales growth in the low-20% range, deliberately restraining wholesale sell-in to protect channel health. Additional Section 301 tariffs imposed in July 2026 are expected to increase duties, and the incremental earnings impact was not quantified, leaving second-half execution critical.
On Holding LtdOn raised 2026 gross margin outlook and reported strong Q2 results with margin expansion.
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