ONON Delivers Record Q1 Results: Margin Expansion, APAC Momentum, and Upbeat 2026 Outlook Define the Story
Record Net Sales Driven by Asia-Pacific and Apparel Strength
On Holding AG (NYSE:ONON) started 2026 on a high note, setting a new quarterly record with CHF 831.9 million net sales—up 14.5% from last year and a notable 26.4% jump on a constant currency basis. This is the first quarter ONON surpassed the CHF 800 million mark, a testament to the brand’s successful push into new geographies and consumers, while deepening engagement through both Direct-to-Consumer (DTC) and Wholesale channels.
Leading the charge, ONON’s Asia-Pacific business soared by 44.4% (or 61.4% constant currency), with China and South Korea flagging the fastest growth. Apparel sales jumped 45.1% (57.5% constant currency), signaling the category’s growing role in brand expansion. Across the board, double-digit gains were posted in Europe, Middle East, and Africa (EMEA), as well as in the Americas.
| Segment | Net Sales (CHF, Q1 2026) | Y/Y Change | Constant Currency Change |
|---|---|---|---|
| Total Net Sales | 831.9M | +14.5% | +26.4% |
| DTC | 322.3M | +16.4% | +28.7% |
| Wholesale | 509.6M | +13.3% | +25.1% |
| APAC | 174.0M | +44.4% | +61.4% |
| EMEA | 207.1M | +22.8% | +25.6% |
| Americas | 450.7M | +3.1% | +17.1% |
| Apparel | 55.3M | +45.1% | +57.5% |
| Shoes | 763.7M | +12.2% | +24.0% |
| Accessories | 12.9M | +70.7% | +86.6% |
Margins Hit New Highs: Profitability Levers Clearly in Place
ONON’s profitability gains kept pace with sales growth. Gross profit jumped to CHF 534.3 million (up 22.8%), and the gross profit margin spiked to 64.2%—a 4.3-point improvement from last year—even as headwinds like higher U.S. tariffs challenged the bottom line. The adjusted EBITDA margin reached 21.0% (up from 16.5%), and net income margin climbed to 12.4% from 7.8%. These improvements underline ONON’s premium pricing, careful execution, and operating leverage as it gains scale.
| Profitability Metric | Q1 2026 | Q1 2025 | % Change |
|---|---|---|---|
| Gross Profit (CHF M) | 534.3 | 435.3 | +22.8% |
| Gross Profit Margin | 64.2% | 59.9% | +4.3 pts |
| Adjusted EBITDA (CHF M) | 174.3 | 119.9 | +45.4% |
| Adjusted EBITDA Margin | 21.0% | 16.5% | +4.5 pts |
| Net Income (CHF M) | 103.3 | 56.7 | +82.2% |
| Net Income Margin | 12.4% | 7.8% | +4.6 pts |
2026 Guidance Boosted: Sales, Margins, and Global Expansion in Focus
Reflecting confidence in the growth pillars—DTC, Asia-Pacific, and apparel—ONON reaffirmed its full-year outlook for at least 23% constant currency net sales growth. The company raised its gross margin guidance to at least 64.5% for 2026, aiming even higher despite U.S. tariff headwinds, and expects adjusted EBITDA margin in the 19.5%-20.0% range. Notably, store expansion remains on track with premium brand hubs set to open in Stockholm, São Paulo, and Sydney.
| FY 2026 Guidance | Expectation |
|---|---|
| Net Sales (constant currency) | ≥23% Y/Y growth |
| Reported Net Sales | ≥ CHF 3.51B |
| Gross Profit Margin | ≥ 64.5% |
| Adjusted EBITDA Margin | 19.5% to 20.0% |
Key Takeaways: What Sets ONON Apart in 2026?
- APAC and apparel are now significant growth engines—helping ONON diversify revenue and reduce regional and product risk.
- Margin expansion looks sustainable, rooted in both premium pricing and efficiency gains despite global cost headwinds.
- Global store rollout and innovation are reinforcing brand equity, as ONON continues to invest for long-term leadership.
Moving forward, investors and consumers alike will be watching whether ONON can maintain its profit discipline and momentum as the global environment remains volatile. For now, ONON’s laser-focused strategy and robust profitability metrics set a formidable foundation for 2026 and beyond.
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