On Holding AG (NYSE:ONON) shares traded lower in premarket trading Tuesday after the company reported first-quarter fiscal 2026 results that topped Wall Street estimates and reaffirmed its full-year sales outlook.
On Holding Earnings Snapshot
The company reported record first-quarter net sales of 831.9 million Swiss francs, up 14.5% year over year and 26.4% on a constant-currency basis.
Growth was broad-based across direct-to-consumer sales, which rose 16.4%, and wholesale revenue, which increased 13.3%, driven by stronger global demand and higher customer engagement.
Adjusted earnings rose to 0.37 Swiss franc per share from 0.21 Swiss franc per share in the prior-year quarter.
In U.S. dollar terms, adjusted EPS came in at 47 cents, beating analyst estimates of 32 cents. Revenue totaled $1.06 billion, slightly above the consensus estimate of $1.05 billion.
Profitability also improved during the quarter. Gross margin expanded 430 basis points year over year to 64.2%, while adjusted EBITDA margin increased to 21.0% from 16.5% a year earlier. The company attributed the gains to strong full-price selling, operational efficiencies and leverage, despite tariff-related pressures.
On Holding ended the quarter with cash and cash equivalents of 1.02 billion Swiss francs, while net working capital increased 14.1% year over year to 650.8 million Swiss francs.
Segment And Regional Performance
Regionally, EMEA revenue rose 22.8% to 207.1 million Swiss francs, the Americas grew 3.1% to 450.7 million Swiss francs, and Asia-Pacific sales surged 44.4% to 174.0 million Swiss francs.
By product category, footwear revenue increased 12.2% to 763.7 million Swiss francs. Apparel sales jumped 45.1% to 55.3 million Swiss francs, while accessories revenue climbed 70.7% to 12.9 million Swiss francs.
The company said retail expansion continued with improved store productivity and planned openings in Stockholm, São Paulo and Sydney. On Holding also highlighted continued innovation momentum, including the broader rollout of LightSpray technology and new lifestyle product launches.
On Holding Outlook
The company reaffirmed its fiscal 2026 outlook for at least 23% constant-currency sales growth, implying a minimum of 3.51 billion Swiss francs in reported sales at current exchange rates.
The company also raised its profitability guidance and now expects gross margin of at least 64.5% and adjusted EBITDA margin between 19.5% and 20.0%.
On Holding said its raised outlook reflects strong operations and continued premium brand execution. The guidance also factors in a 20% additional tariff on products imported into the U.S. from Vietnam and does not include any possible tariff refunds.
Price Action
ONON Price Action: On Holding shares were down 3.06% at $33.00 during premarket trading on Tuesday, according to Benzinga Pro data.
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