On Raises Annual Margin Forecast
The Swiss running shoe brand reported third-quarter sales above analyst estimates and lifted its gross margin outlook for fiscal 2026.
Updated on Nov. 10, 2026 in Retail
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On reported third-quarter sales of 931.4 million Swiss francs ($1.14 billion), above analysts' estimates of 929.3 million Swiss francs. The company also raised its annual gross margin forecast.
Why it matters
The results show continued demand for the brand's premium shoes and apparel, driven by new product launches and celebrity collaborations. The stronger outlook suggests the company is gaining ground against established rivals in the sportswear market.
Third-quarter sales reached 931.4 million Swiss francs ($1.14 billion), slightly above the 929.3 million franc analyst estimate, and the company now expects a fiscal 2026 gross profit margin of about 67.5%, or roughly 66% excluding US tariff refunds. The source does not break down how much of the margin uplift is recurring.
The players
On
On is a Swiss sportswear company known for its cushioning technology and running shoes, which has grown rapidly in recent years.
Kylian Mbappe
Kylian Mbappe is a French professional soccer star who recently signed a partnership with On.
The details
On's growth has been fueled by new product launches and celebrity collaborations across premium shoes and apparel, and the company has expanded its store footprint globally. It has also taken market share from Nike and Adidas. In September, the company authorized its first share buyback plan of up to $1 billion running through the end of 2029, and it recently signed French soccer star Kylian Mbappe.
Timeline
September 2026: On authorizes its first share buyback plan of up to $1 billion.
November 10, 2026: On raises its annual gross margin forecast after beating third-quarter sales estimates.
Through the end of 2029: Share buyback plan period ends.
Fiscal 2026: Expected gross profit margin target period.
Market Landscape
On's gains come at the expense of Nike and Adidas, the two largest incumbents in global athletic footwear. The company's rising share and expanding store network position it as one of the few challengers pressing the established sportswear giants in the premium segment.
For shoppers, the company's strong growth and expanding store footprint suggest continued availability of its premium shoes and apparel across more markets. The source does not indicate any change to retail pricing or product lines as a result of the margin forecast.
The takeaway
Rising sales and margin guidance can signal that a brand's product bets are paying off, but investors and shoppers should watch whether margin gains hold once one-time tariff refunds are excluded. The 66% figure excluding refunds is the more conservative benchmark to track.
What happens next
On's share buyback plan runs through the end of 2029, with fiscal 2026 gross margin guidance serving as the next measurable checkpoint for the company's stated outlook.
Further reading
For more on how brands like this are competing for shoppers, see the Retail section.
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