On Holding: 3 Key Takeaways for Long-Term Investors
Key Points
On Holding generated quarterly net sales of CHF 931.4 million.
Cloudsurfer 3's launch-week sell-through was four times that of Cloudsurfer 2.
Direct-to-consumer sales grew 24.8% at constant currency to CHF 393.3 million.
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On its third-quarter 2026 earnings call, held on Nov. 10, 2026, On Holding (NYSE:ONON) announced that quarterly net sales grew 17.8% at constant currency (excluding foreign exchange rate fluctuations) to CHF 931.4 million. The footwear maker expanded gross margins by protecting full-price selling despite promotional pressure across the broader apparel market. Three takeaways from management's comments illustrate how the business is positioning for long-term compound growth.
1. New Shoe Technology Accelerates Early Sales Velocity
The Cloudsurfer 3 performance running shoe represents the first launch of On Holding's new sensation-based franchise architecture and SURREAL superfoam technology. Run specialty retail partners are seeing rapid product turnover without relying on price markdowns.
In its first week, the Cloudsurfer 3 sold through at more than 4x the rate the Cloudsurfer 2 did in its launch week.
-- Caspar Coppetti, Founder and Co-CEO
2. Full-Price Discipline Drives Record Profitability in Direct Channels
Direct-to-consumer (DTC) sales, which include transactions through company stores and e-commerce platforms, expanded faster than wholesale while deepening engagement with younger shoppers. Management maintained strict full-price discipline across channels to expand underlying profit margins.
The share of our online customers under 24 almost doubled year-on-year, with strong increases among both men and women.
-- Frank Sluis, CFO
3. Apparel Category Expansion Increases Customer Share of Wallet
Apparel revenue expanded rapidly as On Holding introduced dedicated women's training collections and high-productivity store layouts. Accelerating store apparel productivity supports management's plan to triple category sales over three years.
Apparel grew 38% at a constant currency, and we are on track with our goal to triple net sales over the next 3 years while extending our share of wallet with existing customers.
-- Caspar Coppetti, Founder and Co-CEO
Looking Ahead
Full-year net sales are tracking toward low 20s percentage growth at constant currency, and momentum is building across global retail markets as new innovation cycles land.
We are planning for growth to accelerate in the fourth quarter, with our holiday campaign now live and the biggest innovation cycle in our history gathering pace.
-- Frank Sluis, CFO
Proprietary foam technology and direct retail channels provide structural competitive advantages while management maintains pricing discipline and controlled international expansion.
In an expected promotional environment, we will stay true to who we are.
-- Frank Sluis, CFO
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The Motley Fool has positions in and recommends On Holding. The Motley Fool has a disclosure policy.
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