On aims for further growth, sets new targets for 2029

Swiss sportswear provider On Holding AG presented its new financial targets for the period up to 2029 on Tuesday, ahead of an investor day. The company also confirmed its current annual forecasts.

For the next three years, On is aiming for average annual sales growth in the high teens on a currency-neutral basis. This should bring total sales in the 2029 financial year to at least 5.6 billion Swiss francs, based on current exchange rates.

Throughout the entire three-year period, the company expects a gross margin of over 65.0 percent. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) is forecast to increase by an average of more than 20 percent per year. The adjusted EBITDA margin is expected to reach over 22 percent in 2029.

Company focuses on 'On Premium Playbook' strategy

To achieve its self-imposed goals, the sportswear provider is relying on its 'On Premium Playbook' growth strategy. Key points include the development of innovative products in its own research facilities and partnerships with prominent athletes. The company caused a stir just a few days ago when it introduced French football star Kylian Mbappé as its new brand ambassador. Mbappé, who was previously under contract with US giant Nike, will help launch On's entry into the football business.

The 'On Premium Playbook' also involves creating 'premium experiences' in its own distribution channels and with selected retail partners. This aims to deepen relationships with customers worldwide.

Overall, the focus is on achieving 'high-quality profits'. A diverse product range is intended to increase demand from both existing and new customers. The goal is to secure a high proportion of products sold at full price, thereby achieving 'strong financial results'. These results would be used to 'finance the future', the company explained. Further investments in personnel and technological capabilities are also planned.

On aims to increase sales and margin simultaneously

Caspar Coppetti, one of the founders and co-CEOs of On, explained the current plans. "We are well on our way to significantly exceeding the targets we presented at our last investor day in 2023," he emphasised in a statement. "For the period up to 2029, we are committed to 'premium' as our guiding star, focusing on the long-term perspective and consistently implementing every step of the 'On Premium Playbook'."

"This is 'simple in principle and demanding in execution'," explained Coppetti. The plan is effective "because the effects are mutually reinforcing: sales growth and margin expansion are not contradictory at On; they are complementary effects of our 'Premium Playbook'."

Management confirms its current annual forecasts

The management maintained its forecasts for the current financial year. For 2026, it continues to expect currency-neutral sales growth in the low 20 percent range, a gross margin of at least 65.0 percent, and an adjusted EBITDA margin between 19.5 and 20.0 percent.

The expected refund of unlawfully paid US customs duties is not yet included in the forecasts. The company currently expects a corresponding repayment of up to 65 million US dollars, which is expected to take place during the third quarter.

At the same time, On announced an extensive share buyback programme. The board of directors authorised the purchase of its own shares with a total value of up to one billion US dollars by the end of December 2029.