On Holding AG Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Textiles, Apparel and Luxury Goods | Market Cap: ₹25.4K Cr
- The company maintains a constant currency net sales growth guidance of at least 23% for 2026, reflecting confidence despite macroeconomic uncertainties. - The company maintains a constant currency net sales growth guidance of at least 23% for 2026, reflecting strong confidence despite macroeconomic uncertainties.
From On Holding AG's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹39.75
Market Cap
₹25.4K Cr
P/E Ratio
42.0
Revenue Rank
Margin Rank
How does On Holding AG rank in Textiles, Apparel and Luxury Goods?
Compare On Holding AG against every Textiles, Apparel and Luxury Goods company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 2- →The company maintains a constant currency net sales growth guidance of at least 23% for 2026, reflecting confidence despite macroeconomic uncertainties.
- →Growth will be driven by continued very strong expansion in the direct-to-consumer (D2C) channel, with expectations of slower wholesale growth to maintain clean inventory levels.
- →Innovation and new product launches, including Superfoam, LightSpray, and collaborations like Zendaya collections, are expected to fuel demand and cultural relevance.
- →Apparel is becoming a significant growth driver, contributing over 10% of D2C sales and attracting younger, lifestyle-oriented consumers.
- →Geographic growth is balanced, with strong momentum in established markets (North America, Central Europe) and rapid expansion in newer markets (Asia Pacific, Latin America).
- →Wholesale expansion has room to grow, currently in about 50% of retail doors, offering multiyear expansion opportunities.
- →Overall, the company aims for premium, high-quality growth while preserving brand equity and profitability.
📈 Profitability & Margins
Rank 1- →The company maintains a constant currency net sales growth guidance of at least 23% for 2026, reflecting strong confidence despite macroeconomic uncertainties.
- →Adjusted EBITDA margin is expected to increase to a range of 19.5% to 20%, up from 18.8% in 2025, indicating improved operating profitability.
- →Gross profit margin guidance is set at a new baseline of at least 64.5% for the full year, a material improvement supported by premium pricing, operational efficiencies, and positive FX and tariff effects.
- →Marketing expenses are forecasted between 13% and 13.5% of sales, supporting brand investment while preserving profitability.
- →Emphasis on high-quality, premium growth with disciplined channel management aims to sustain profitability and long-term value creation, avoiding growth at any cost.
- →Strong innovation pipeline and D2C channel momentum underpin optimistic future earnings growth and margin expansion.
🏗️ Capital Expenditure Plans
Yes- →Capital expenditures were CHF 23.6 million in the quarter, representing 2.8% of net sales, up from 1.7% the prior year.
- →Investments focus on expanding stores and store expansion globally.
- →Significant investment in innovation and product development, including LightSpray factory expansion in Busan, South Korea (30-fold capacity increase).
- →Continued spending on brand-building investments such as Zendaya collaboration, LightSpray innovation activations, and media targeting new communities.
- →Investment in accelerating retail expansion with new store openings in key cities like San Francisco, Stockholm, Sao Paulo, Miami, Milan, and Tokyo.
- →Ongoing initiatives to improve operational efficiency, shorten development time, and enhance planning efficiency to support premium growth.
- →Focus on reinvesting efficiency gains selectively for long-term returns in product innovation, brand awareness, and retail.
💰 Fundraising & Capital Structure
No information- →There is no mention of any current or future fundraising through debt or equity in the provided transcript.
- →The focus is on strong financial performance, cash flow, and profitability, with increasing adjusted EBITDA margins and investment funded from internal resources.
- →The company emphasizes operational leverage, reinvestment in growth, and maintaining premium brand positioning without indicating plans for external capital raising.
- →Leadership transitions and strategic growth plans were discussed, but no reference to planned debt or equity issuance was made.
📋 Order Book & Pipeline
Yes- →The company maintains a constant currency sales guidance of 23% growth for the year, based on current visibility and order books for fall/winter.
- →Confidence is high in this guidance given the quality of growth and strong order books across regions and channels.
- →Wholesale partners have clean inventory levels, indicating a cautious but optimistic approach for upcoming innovation launches in early 2027.
- →Order books for the specialty running segment are up over 25% year-over-year, signaling strong partner conviction.
- →Management is ready to accelerate growth if opportunities arise but remains committed to premium strategy and margin discipline.
- →Early demand indicators, including sell-outs of new products like the LightSpray Cloudmonster and successes with collaborations (Zendaya collection), support the growth outlook.
- →No explicit upside to guidance is confirmed, influenced by factors such as an increasing promotional landscape and macroeconomic uncertainties.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
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Frequently Asked Questions
What were On Holding AG Q2 FY26 results?
- The company maintains a constant currency net sales growth guidance of at least 23% for 2026, reflecting confidence despite macroeconomic uncertainties. - The company maintains a constant currency net sales growth guidance of at least 23% for 2026, reflecting strong confidence despite macroeconomic uncertainties.
What is On Holding AG share price analysis?
On Holding AG currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 42.0 with a market cap of $25,365. Investors should review the full earnings analysis for detailed insights.
Is On Holding AG planning capital expenditure?
- Capital expenditures were CHF 23.6 million in the quarter, representing 2.8% of net sales, up from 1.7% the prior year.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.