On Lifts 2026 Profit Goal Amid Strong Q1 Sales Growth

Key Financial Updates

Sportswear brand On has raised its 2026 profit margin forecast following robust first-quarter sales performance. The company now anticipates an operating profit margin of between 19.5% and 20% for 2026, an increase from its previous guidance of 18.5% to 19%.

Q1 Performance Overview

In the first quarter, On reported a 26.4% currency-adjusted sales growth, reaching 831.9 million Swiss francs and beating analyst forecasts. The Asia-Pacific region led this expansion with a significant 61.4% sales increase. In contrast, growth in the Americas, the company's largest market, moderated to 17.1%.

Market Impact and Strategy

The company attributes its success to new product launches and a strategic partnership with celebrity ambassador Zendaya, aimed at attracting younger female consumers. Despite the strong earnings report, On's U.S.-listed shares saw an initial decline as analysts noted the slowing growth rate in the American market.

Outlook Summary

Looking ahead, On reaffirmed its target of at least 23% sales growth for the current year. The company's focus remains on product innovation and continued expansion in high-growth regions like Asia to support its long-term margin outperformance.

FAQ

Q: What is On's new profit margin target for 2026?
A: On raised its 2026 operating profit margin target to a range of 19.5% to 20%.

Q: Which region showed the strongest sales growth for On in Q1?
A: The Asia-Pacific region recorded the highest sales growth at 61.4%.

Source: Investing.com