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On Holding (ONON) Outlines Ambitious Goals and $1B Buyback, Jumps 7.6%

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On Holding (ONON) Outlines Ambitious Goals and $1B Buyback, Jumps 7.6%

On Holding AG Ltd. (NYSE:ONON) grew its share price by 7.58 percent on Tuesday to close at $29.39 apiece as investors loaded positions after announcing a $1 billion buyback program over the next three years.

In its recently held Investor Day, On Holding AG Ltd. (NYSE:ONON) said that the share repurchase program reflects its strong balance sheet and forms part of its initiative to return higher value to shareholders. The buyback will only involve Class A ordinary shares.

Encouraged by solid growth in its earnings performance in the past quarters, On Holding AG Ltd. (NYSE:ONON) further raised its growth outlook through 2029, with net sales targeted to grow by high teens on a constant currency basis.

Absolute net sales are projected to hit at least CHF 5.6 billion or $7 billion at current foreign exchange rates, while gross profit margin is expected at 65 percent. Adjusted EBITDA margin is at 22 percent.

For this year, On Holding AG Ltd. (NYSE:ONON) has reaffirmed its full-year 2026 net sales growth outlook of low 20 percent on a constant currency basis, as well as gross profit margin of 65 percent, and an adjusted EBITDA margin in the range of 19.5 percent to 20 percent.

The figures exclude an expected $65 million in tariff refunds which are targeted to be received in the third quarter of the year.

"We are on track to significantly overachieve our targets given at the last Investor Day in 2023. For the period through 2029, we are committing to premium as our north star, staying focused on the long term, and executing on each turn of the On Premium Playbook," founder and co-CEO Caspar Coppetti said.


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