On Holding Reports Strong Q2 Growth as Direct-to-Consumer Sales Surge 26%
The Swiss athletic footwear maker posted 13.5% revenue growth and swung to profitability, with gross margin expanding nearly 400 basis points year-over-year.
Strong Quarter Signals Momentum for Swiss Athletic Brand
On Holding AG reported second-quarter results that demonstrated accelerating growth in its direct-to-consumer business and significant margin improvement, according to a 6-K filing submitted to the SEC on August 11, 2026.
The Zurich-based performance footwear company posted net sales of CHF 850.3 million for the three months ended June 30, 2026, representing a 13.5% increase from the prior-year period, or 21.6% on a constant currency basis (6-K filing, 2026-08-11). The company swung to profitability with net income of CHF 105.0 million, compared to a loss of CHF 40.9 million in the same quarter last year.
Direct Sales Drive Growth Strategy
The quarter's performance was led by On's direct-to-consumer channel, which grew 26.0% year-over-year to CHF 388.4 million, or 34.3% on a constant currency basis (6-K filing, 2026-08-11). The company attributed this growth to "continued increase in popularity and awareness of the On brand, resulting in increased traffic and transactions, both on our e-commerce platform and in our existing retail stores" (6-K filing, 2026-08-11).
DTC sales now represent 45.7% of total revenue, up from 41.1% in the prior-year quarter, reflecting the company's stated strategic ambition for its direct channel to outpace wholesale growth (6-K filing, 2026-08-11).
Wholesale sales increased 4.8% to CHF 461.9 million, with the more modest growth reflecting "disciplined sell-in to wholesale partners in a more promotional environment, particularly in the Americas" (6-K filing, 2026-08-11).
Margin Expansion and Geographic Performance
Gross profit margin expanded to 65.4% from 61.5% in the prior-year quarter, an improvement of 390 basis points (6-K filing, 2026-08-11). The company reported adjusted EBITDA of CHF 168.1 million, up 23.5% year-over-year, with adjusted EBITDA margin increasing to 19.8% from 18.2% (6-K filing, 2026-08-11).
Geographically, Asia-Pacific led growth with a 43.1% increase to CHF 170.5 million, or 54.7% on a constant currency basis (6-K filing, 2026-08-11). EMEA sales rose 15.4% to CHF 228.2 million, while Americas grew 4.5% to CHF 451.6 million.
Product Mix and Balance Sheet
Footwear remained the core business, generating CHF 781.6 million in sales, up 10.9% year-over-year (6-K filing, 2026-08-11). However, apparel showed particularly strong momentum with sales of CHF 54.2 million, up 47.7%, while accessories grew 88.3% to CHF 14.5 million.
The company's balance sheet strengthened during the first half of 2026, with cash and cash equivalents increasing 18% to CHF 1,205.6 million from year-end 2025 levels (6-K filing, 2026-08-11).
According to MarginX data, recent insider activity included tax withholding transactions for shares awarded to executives Helena Helmersson, Laura Miele, and CFO Frank Sluis, who signed the filing.
On Holding, founded in the Swiss Alps in 2010, describes itself as "a premium performance sportswear brand rooted in innovation, design, and sustainability" with a presence across more than 90 countries (6-K filing, 2026-08-11).
This article was generated by MarginX from the 6-K filing on 2026-08-11. It is not investment advice.