On Holding LtdONON
▲ PositiveDemandrelevance
DTC sales up 26% to record 45.7% of total, driving margin expansion and raised outlook.
Impact on stocks 3
Consumer Discretionary
On Holding AG's direct-to-consumer (DTC) momentum is reinforcing its premium business model, with second-quarter 2026 DTC sales climbing 26% year over year to CHF 388.4 million, or 34.3% at constant currency. The channel accounted for a record 45.7% of total sales, up from 41.1% a year earlier, driven by e-commerce and company-owned stores, with online growth exceeding expectations in every region. This shift toward the highest-margin channel lifted gross margin by 390 basis points to 65.4% despite higher U.S. import tariffs, and adjusted EBITDA margin expanded to 19.8% from 18.2%. DTC outperformed wholesale in every region, while wholesale sales grew only 4.8% due to softer demand and deliberate shipment restraint. On Holding expects DTC growth to strongly outpace wholesale in the second half of 2026, and management raised its full-year gross margin outlook to at least 65%, maintaining adjusted EBITDA margin guidance of 19.5-20%. In comparison, Deckers Outdoor Corporation saw DTC sales rise 13% in its first quarter of fiscal 2027, led by HOKA's 17% growth, while Wolverine World Wide's DTC revenues remained flat in its second quarter of 2026. On Holding's shares have fallen 25.6% over the past three months, and it carries a Zacks Rank #5 (Strong Sell).
On Holding LtdDTC sales up 26% to record 45.7% of total, driving margin expansion and raised outlook.
Deckers Outdoor Corporation
Wolverine World Wide Inc