On Reports 13.5% Net Sales Growth in Q2 2026, Driven by DTC and Asia-Pacific

Swiss performance sportswear brand On announced its financial results for the second quarter and first half of 2026 on August 11. Second-quarter net sales increased by 13.5% year-over-year to CHF 850.3 million, representing growth of 21.6% on a constant currency basis. Strong momentum across the direct-to-consumer channel, Asia-Pacific and apparel supported the overall performance.

Summary

DTC Net Sales Rise 26% to Reach a Record Share

On’s direct-to-consumer channel, which includes its own stores and e-commerce operations, was the primary driver of growth during the quarter. DTC net sales increased by 26.0% year-over-year to CHF 388.4 million and by 34.3% on a constant currency basis.

DTC accounted for 45.7% of total net sales, marking a new second-quarter high. According to the company, the channel exceeded expectations across every region.

Wholesale net sales, meanwhile, rose by 4.8% to CHF 461.9 million, or by 12.7% on a constant currency basis. The significant difference between the growth rates of the two channels reflects On’s continued investment in direct consumer relationships and premium brand experiences.

On’s global brand awareness also climbed to 30%. Consumers under the age of 34 now represent more than one-third of its customer base, with the Cloudtilt franchise resonating particularly strongly among younger shoppers.

Japan and South Korea Support Asia-Pacific Growth

Asia-Pacific remained On’s fastest-growing region during the quarter. Net sales increased by 43.1% year-over-year to CHF 170.5 million and by 54.7% on a constant currency basis. The region again accounted for more than 20% of the company’s global net sales.

On attributed the performance to particularly strong momentum in Japan, South Korea and Greater China.

Net sales in Europe, the Middle East and Africa increased by 15.4% to CHF 228.2 million, while the Americas recorded growth of 4.5% to CHF 451.6 million. On a constant currency basis, the two regions grew by 20.5% and 13.0%, respectively, resulting in growth across all geographical markets.

The company is also continuing to expand its network of directly operated stores. On recently opened its first stores in São Paulo, Brazil, and Copenhagen, Denmark, extending its global presence through additional premium brand hubs.

Apparel Net Sales Increase by 47.7%

Alongside its core footwear business, On delivered substantial growth across apparel and accessories.

Footwear net sales increased by 10.9% year-over-year to CHF 781.6 million. Apparel rose by 47.7% to CHF 54.2 million, while accessories increased by 88.3% to CHF 14.5 million.

On a constant currency basis, footwear grew by 18.9%, apparel by 56.2% and accessories by 102.2%. While footwear continues to represent the majority of the company’s business, the results demonstrate On’s ongoing expansion into a broader performance sportswear brand.

Gross Profit Margin Reaches 65.4%

Profitability also improved significantly during the quarter. Gross profit increased by 20.6% year-over-year to CHF 555.7 million, while gross profit margin rose from 61.5% to 65.4%.

The margin improvement came despite the company fully absorbing higher U.S. import tariffs and excluding any tariff refunds. On attributed the result to its growing DTC mix, operational efficiencies and continued commitment to full-price selling.

Adjusted EBITDA increased by 23.5% to CHF 168.1 million, while adjusted EBITDA margin rose from 18.2% to 19.8%. The company reported net income of CHF 105.0 million, compared with a net loss of CHF 40.9 million in the same period a year earlier.

David Allemann, Founder and Co-CEO of On, said: “We are proving that a brand can achieve global scale without compromising its premium brand positioning. Our Q2 results reflect this discipline – demonstrating strong net sales growth globally, significant expansion of our own channels, and an exceptional gross profit margin. This financial strength allows us to reinvest in what drives our long-term success: authentic brand connections, premium customer experiences, and, above all, continuous performance innovation. Our founder-led perspective keeps us focused on taking the right decisions as we build the most premium global sportswear brand for decades to come with an enviable, compounding financial profile.”

Next-Generation Running Products Set to Launch

On is continuing to invest in product development to support its long-term growth. At its inaugural Running Summit, the company unveiled a series of next-generation running products scheduled to reach the market in the second half of 2026 and throughout 2027.

The lineup includes the recently launched Cloudboom Strike 2, as well as the new SURREAL superfoam, which will debut in the Cloudsurfer 3 later in 2026.

On also plans to expand LightSpray, its manufacturing technology designed to automate upper production while improving weight and production efficiency. Following validation among elite athletes, the technology is developing into a commercial platform and will be introduced across additional core franchises.

On Forecasts Low-20% Full-Year Growth

For the first six months of 2026, On’s net sales increased by 14.0% year-over-year to CHF 1.68 billion, or by 24.0% on a constant currency basis. Net income rose to CHF 208.3 million from CHF 15.8 million in the prior-year period.

For the full year, On expects net sales to grow in the low-20% range on a constant currency basis. At current exchange rates, this would translate into net sales of between CHF 3.47 billion and CHF 3.56 billion.

The company expects DTC to significantly outperform wholesale during the second half. At the same time, it plans to manage wholesale sell-in deliberately to protect full-price integrity and create a healthy retail environment for the product innovations scheduled to launch ahead of 2027.

On raised its full-year gross profit margin forecast to at least 65.0%, while maintaining its adjusted EBITDA margin guidance of between 19.5% and 20.0%.

With DTC and Asia-Pacific leading growth and apparel and accessories gaining further momentum, the results show On broadening its global reach and product offering. At the same time, its focus on full-price selling and premium brand positioning continues to support both net sales growth and profitability.

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