Shares of On Holding climbed 8% on Tuesday after the Swiss sportswear maker unveiled its first-ever share repurchase program and a set of long-term financial objectives at its investor day. The stock, which had declined roughly 40% year to date, found support as management laid out a roadmap to expand beyond its running-shoe roots.
The company authorized up to $1 billion in buybacks through the end of 2029, marking a new capital-return initiative. On also said it is targeting high-teens annual constant-currency sales growth over the same period, alongside gross profit margins of at least 65% and an adjusted EBITDA margin above 22%.
Financial targets through 2029
On is aiming for 2029 net sales of at least 5.6 billion Swiss francs, or about $6.83 billion, compared with 3.01 billion Swiss francs in the prior year. For 2026, the company reiterated its forecast for low-20% constant-currency sales growth, a gross margin of at least 65%, and an adjusted EBITDA margin between 19.5% and 20%. That 2026 outlook excludes a potential benefit of up to 53 million Swiss francs, or roughly $65 million, from tariff refunds expected in the current quarter. On noted it had already received about 28 million Swiss francs in refund proceeds as of mid-August.
Management also guided for third-quarter constant-currency revenue growth of approximately 17%.
Buyback draws mixed analyst reaction
Morningstar analyst David Swartz described the targets as aggressive but said management sounded confident. He added that he had anticipated buybacks would start in 2027 and at a smaller scale. Jefferies analyst Randal Konik took a more cautious stance, saying the firm would prefer a more achievable target.
Several other analysts maintained bullish ratings following the event. Stifel and Goldman Sachs reiterated Buy ratings with price targets of $41 and $42, respectively, citing the credibility of the new financial framework. Morgan Stanley also kept a Buy rating and a $39 price target.
Expansion into soccer and new categories
On is broadening its product strategy into new sports, planning an entry into soccer after signing French football star Kylian Mbappe as a global ambassador. Football and golf have been identified as near-term growth pillars alongside the company's existing Run, Sneaker, and Apparel categories. The move comes as On contends with slower growth, particularly in the Americas, where second-quarter net sales fell short of estimates.
The company also announced a governance change, appointing Laura Miele as lead independent director effective September 21. Miele has been on On's board since 2024 and serves as president of enterprise development at Electronic Arts.
On's new targets and buyback arrive as the company seeks to reinforce growth while preserving its premium positioning. Its soccer push, backed by the Mbappe partnership, adds another potential avenue for expansion as it competes with larger sportswear brands.
This article is for informational purposes only and does not constitute financial advice.
