MarketMoodz
On Holding Beats Q1 Estimates as China Growth Surges
On Holding posted Q1 2026 revenue of 831.9 million CHF, up 14.5% year over year and ahead of estimates. The results spotlight a China growth surprise even as Nike wrestles with headwinds in the region, and management lifted the full-year profitability outlook while elevating its co-founders to co-CEO roles.
Key Takeaways
- Revenue 831.9 million CHF, +14.5% YoY, topping estimates
- Adjusted EPS 0.37 CHF vs 0.27 CHF expected
- DTC revenue 322.3 million CHF, +16.4% but below consensus 326 million
- Wholesale revenue 509.6 million CHF, +13.3%
- Guidance raised: 2026 gross margin at least 64.5% and adjusted EBITDA margin 19.5-20%; full-year net sales growth reiterated
People Involved
- David AllemannCo-founder; named co-CEO of On Holding
- Caspar CoppettiCo-founder; named co-CEO of On Holding
Entities Involved
- On Holding AG (ONON)Swiss premium athletic brand; Q1 results and 2026 guidance
- Nike, Inc. (NKE)Competitor facing China headwinds; peer in athletic footwear
MarketMoodz Analysis
For investors, the topline beat underscores ON’s ability to grow revenue and widen margins as it reinvests in apparel and new product categories, with China delivering high-double-digit sales growth and apparel penetration around 30% versus roughly 6% companywide. The DTC outperformance is not yet material, but the stronger profitability outlook signals disciplined operating leverage and a shift toward higher-margin products.
Historically, ON has pursued a premium branding strategy and scaled through product附 categories, which sets up a useful comparison to Nike as both navigate China’s evolving athletic-gear market. Watch for Q2 results and the cadence of 2026 guidance execution, including gross margin progression, the DTC/wholesale mix, tariff-related costs, and currency effects that could alter the path to double-digit growth.
Source: Original Article