On posts a record quarter but the stock falls 17 per cent

The Zurich sportswear maker On has reported the best quarter in its history and watched its stock fall 17 per cent in trading ahead of the Wall Street open. The two facts do not contradict each other: the market reacted to the guidance, not to the results.

The April-to-June figures are solid. Revenue reached 850 million francs, up 14 per cent year on year and 22 per cent at constant currency, a gap that measures the weight of the strong franc. Adjusted Ebitda rose 24 per cent to 168 million and the operating margin improved from 18.2 to 19.8 per cent. Net profit came in at 105 million, against a loss of 4 million in the same quarter of 2025.

Growth is unevenly distributed across categories. Clothing rose 48 per cent and accessories 88 per cent, while footwear, still 92 per cent of turnover, grew 11 per cent. These are percentages starting from very different bases, but they indicate the direction in which the company is trying to broaden its range.

Asia grows, the Americas slow

Geographically the divergence is sharper. Asia-Pacific generated 171 million francs, an advance of 43 per cent. Europe, the Middle East and Africa brought in 228 million, up 15 per cent. The Americas remain the main market at 452 million, but grew only 5 per cent.

Co-chief executive David Allemann pointed to China, South Korea and South-East Asia as the most dynamic areas. On the American market he flagged weakness in retail channels, attributed to the heavy discounting under way, and explained that the company's aim is to stimulate full-price demand through new products.

It is precisely that passage which explains the market's reaction. Alongside the results, On cut its sales guidance for 2026 as a whole. For a stock valued on expectations of future growth, a lowered target weighs more than a successful quarter.

The company was founded in 2010 by David Allemann, Olivier Bernhard and Caspar Coppetti. Roger Federer joined as a partner in November 2019 and the New York listing dates from September 2021. In 2025 turnover reached 3.0 billion francs.