TLDR
- ONON stock drops 6.71% to $35.01 despite stronger third-quarter earnings results.
- On Holding AG posts 17.2% Q3 sales growth, reaching CHF 931.4 million in revenue.
- Direct-to-consumer revenue jumps 25% to CHF 393.3 million in the third quarter.
- Quarterly net income rises 36.9% to CHF 162.8 million as profit margins expand.
- Asia-Pacific sales surge 31.1%, outpacing growth across other global regions.
On Holding AG (ONON) shares plunged 6.71% to $35.01, losing $2.52 despite strong third-quarter earnings and direct-to-consumer sales growth. The decline followed the previous closing price of $37.53, reflecting selling pressure despite improved financial results. Meanwhile, the Swiss sportswear company reported higher revenue, stronger profitability, and expanding sales across major international markets.
On Holding AG Reports 17.2% Revenue Growth in Q3
On Holding AG reported third-quarter net sales of CHF 931.4 million, marking a 17.2% year-over-year increase. Additionally, revenue grew 17.8% on a constant currency basis, supported by demand across footwear, apparel, and accessories. The company also increased gross profit by 29.5% to CHF 676 million from CHF 522.2 million.
On Holding AG increased its gross profit margin to 72.6%, compared with 65.7% a year earlier. Net income climbed 36.9% to CHF 162.8 million, while diluted earnings per share reached CHF 0.48. Furthermore, adjusted EBITDA rose 42.7% to CHF 256.8 million, lifting its margin to 27.6%.
The company attributed its performance to premium pricing, product innovation, and a growing share of direct sales. Its Cloudsurfer 3 running shoe also marked an important step in the company’s latest product development cycle. Management continued expanding premium retail experiences while maintaining full-price sales despite promotional competition across the sportswear market.
Direct-to-Consumer Sales Jump 25% as Asia-Pacific Leads Growth
On Holding AG recorded a 25% increase in direct-to-consumer sales, bringing quarterly revenue to CHF 393.3 million. Meanwhile, wholesale revenue climbed 12.2% to CHF 538.2 million, demonstrating growth across both distribution channels. The company continued strengthening its direct retail network and digital sales operations.
Regionally, Asia-Pacific led growth with a 31.1% revenue increase to CHF 189.9 million during the quarter. Europe, the Middle East, and Africa generated CHF 251.4 million, representing a 17.9% increase. Additionally, Americas revenue reached CHF 490.1 million, reflecting 12.4% growth from the corresponding period last year.
Footwear remained the largest product category, generating CHF 843.7 million in sales after growing 15.4%. However, apparel recorded faster growth of 38.7%, bringing quarterly revenue to CHF 69.5 million. Accessories also expanded 39.2% to CHF 18.1 million, highlighting increased demand beyond the company’s core footwear business.
Nine-Month Earnings Strengthen Despite ONON Stock Decline
For the first nine months of 2026, On Holding AG generated CHF 2.61 billion in revenue. This represented 15.1% annual growth, while constant currency sales increased 21.8% during the period. Moreover, net income surged 175.6% to CHF 371 million from CHF 134.6 million.
The company also increased nine-month adjusted EBITDA by 37.4% to CHF 599.1 million. Meanwhile, its gross profit margin improved to 67.6%, compared with 62.5% during the previous year. Cash reserves reached CHF 1.34 billion by September 30, strengthening the company’s financial position.
Despite these results, ONON shares fell 6.71% to $35.01 as selling pressure outweighed the earnings announcement. The decline contrasted with stronger margins, higher direct sales, and continued growth across international markets. On Holding AG maintained its premium pricing strategy while expanding products, stores, and distribution channels.
