Swiss brand On plans $1 billion buyback through 2029, sets long-term targets
ONON•Sales growth and quarterly outlook
The maker of CloudTec running shoes is, however, battling slowing growth in its key Americas market, even as it seeks to chip away at the dominance of Nike, Adidas and Puma in soccer.
Ahead of its investor day on Tuesday, On outlined its financial targets through 2029, including high-teens percentage annual constant-currency sales growth and net sales of at least 5.6 billion Swiss francs ($6.83 billion).
On expects third-quarter constant-currency revenue growth of about 17% and said its annual forecast excludes the benefit from tariff refunds. It expects up to 53 million Swiss francs (about $65 million) in refunds in the current quarter.
The company said it had received about 28 million Swiss francs in refund proceeds as of mid-August, when it reported second-quarter net sales below estimates, citing slowing growth in its Americas segment amid a tough macroeconomic environment.
First share buyback and long-term targets
Sept. 22 (Reuters) - On Holding on Tuesday authorized its first share repurchase programme, worth up to $1 billion through the end of 2029, and unveiled long-term financial targets, as it bets on growth in apparel, sneakers and new sports categories.
US-listed shares of the company rose about 6% in premarket trading.
Backed by Swiss tennis great Roger Federer, On has been broadening its reach, having signed French soccer star Kylian Mbappe last week, a partnership that has raised the brand's profile as it pushes into the world's most popular sport.
