Swiss sneaker maker On Holding, known for its Roger models endorsed by tennis legend Roger Federer, has seen a 11% drop in premarket trading despite impressive financial performance. The company reported record sales and improved profitability in 2025, surpassing estimates. However, the guidance for 2026 fell short of expectations, with sales projected to grow by at least 23% in constant currencies, implying sales of at least 3.44 billion francs. This contrasts with sell-side analyst forecasts of around 3.7 billion francs. Despite this, On remains confident in its strategy to double sales to 3.55 billion francs and boost EBITDA margin to at least 18% by 2026, aiming to become the most premium global sportswear brand. The company's success is attributed to innovative products and a focus on performance footwear and apparel, allowing it to capture market share from competitors like Nike and Adidas. On's CEO, Martin Hoffmann, highlights the brand's ability to exceed aspirations while reinvesting in high-return areas. This strategy has been successful, as evidenced by the company's ability to consistently beat expectations and raise guidance, as seen in the previous quarter. However, some analysts caution that challenges may arise in 2026, and the stock's valuation may not fully account for these risks. The question remains: can On sustain its growth and premium positioning in a competitive market?
