Swiss sneaker maker On Holding experiences a 11% drop in premarket trading, despite impressive growth and record sales in 2025. The brand, known for its premium athletic shoes and apparel, achieved net sales of 743.8 million Swiss francs in the fourth quarter, surpassing estimates and growing by 30.6% in constant currencies. For the entire year, sales reached over 3 billion francs, a significant milestone. On Holding projects a 23% sales growth in 2026, implying sales of at least 3.44 billion francs, but analysts anticipate higher figures. The company's strategy aims to double sales to 3.55 billion francs and boost EBITDA margin to 18% by 2026, targeting premium status. Co-founder David Allemann highlights a societal shift towards health and performance, positioning On Holding as a leader in this market. The brand's profitability hit new highs, with adjusted EBITDA increasing by 31.8% in the quarter. Asia-Pacific sales grew by 85.1%, while the Americas and EMEA regions showed strong performance as well. However, challenges arise as some analysts predict rising competition and pricing pressures in 2026, questioning the sustainability of price-led growth. On Holding's premium positioning and innovative products have helped capture market share from competitors like Nike and Adidas, but the stock's valuation remains a topic of discussion.
