ONON Stock Forecast & Price Target

On Holding has demonstrated robust financial performance, with total sales increasing 23% year-over-year to CHF 744 million, significantly surpassing consensus expectations. Gross margin expanded by 180 basis points to 63.9%, reflecting strong operational efficiency despite higher marketing and selling expenses. Notably, the company’s direct-to-consumer sales grew by 30% in constant currency, underscoring its strong market presence and consumer demand, particularly in the footwear segment, which constitutes 94% of sales.

On Holding has experienced a decrease in financial expectations due to the strength of the Swiss franc, which has created a significant foreign exchange headwind of approximately 800 basis points. The projected EBITDA margin remains stagnant at 18.8%, while gross margins are anticipated to contract by over 50 basis points in 2026 as promotional activities increase and direct-to-consumer (DTC) demand slows down. Furthermore, increasing costs from new tariffs and macroeconomic concerns, such as rising interest rates and weakening consumer confidence, contribute to a negative outlook for the company's stock performance.