On Holding AG Q2 2026 Earnings Recap

Shares of On Holding AG dropped 20% after earnings as investors reacted negatively to weaker-than-expected wholesale sellout performance in the Americas and concerns over decelerating demand in a key channel, despite strong direct-to-consumer growth and maintained margin targets.

Key Takeaways

• Net sales grew 22% at constant currency to CHF 850 million, driven by robust 34% growth in the direct-to-consumer channel across all regions.
• Gross profit margin remained elevated above 65%, with adjusted EBITDA margin close to 20%, reflecting ongoing operational efficiency.
• Wholesale channel underperformed due to lower-than-anticipated sellout of everyday running franchises, especially in the Americas, amid a promotional multi-brand environment.
• Management emphasized disciplined sell-in to wholesale to protect full-price integrity and avoid channel inventory buildup, accepting slower top-line growth there.
• Full-year guidance reaffirmed at low 20s percentage net sales growth and sustained margin targets, but cautious tone on wholesale momentum likely weighed on market sentiment.