On Sportswear Marches Forward with Profitable Strides

Swiss sportswear brand On has raised its profit margin expectations after recording strong first-quarter sales, signaling its growing presence in a market traditionally dominated by Nike and Adidas. This success draws strength from a blend of strategic branding and market expansion efforts.

Co-CEO Caspar Coppetti highlighted the role of brand ambassador Zendaya in appealing to younger, female consumers, with new clothing lines gaining traction. The company saw a significant increase of 26.4% in sales, surpassing analyst forecasts, and now projects an operating profit margin of between 19.5% and 20% for 2026.

Despite slipping U.S. growth slowing gains broadly, On thrives in the Asia-Pacific market, achieving 61.4% sales growth. Jefferies analysts warn that lagging U.S. performance might jeopardize its long-term margin advantage, but strategic executive leadership changes and successful product launches, like the popular Cloudtilt sneakers, offer a promising outlook.

(With inputs from agencies.)