On Holding forecasts 23% sales growth and eyes margin boost from 15% tariff
On Holding reported Q4 sales up 22.6% to CHF743.8 million and EBITDA up 31.8% to CHF131 million, and forecast 23% sales growth in 2026 at constant currency. CEO Martin Hoffmann said a permanent 15% U.S. import tariff could boost profit margins beyond the projected rise from 62.8% to 63%.
1. Q4 Financial Results
On Holding’s fourth-quarter sales rose 22.6% to CHF743.8 million, while EBITDA climbed 31.8% to CHF131 million, driven by limited discounting and strong demand for its premium running shoes priced at $150 and above.
2. 2026 Sales Growth Forecast
The company projected a 23% increase in constant-currency sales for 2026, moderating from 30% growth in 2025 but still outpacing larger rivals, reflecting confidence in its product pipeline and affluent customer base.
3. U.S. Tariff Impact and Margin Outlook
CEO Martin Hoffmann highlighted that the Supreme Court’s removal of emergency levies could lead to a permanent 15% U.S. import tariff, offering potential upside to profit margins beyond the planned increase from 62.8% to 63%.
4. Strategic Growth Initiatives
On Holding plans to open 10 to 15 new stores this year and has filed for tariff refunds, with any proceeds earmarked for reinvestment in marketing, innovation and global expansion rather than consumer discounting.