On Sportswear Marches Forward with Profitable Strides

Swiss sportswear brand On has raised its profit margin forecast following strong first-quarter sales, challenging industry giants Nike and Adidas. With Zendaya as a brand ambassador, On is targeting younger consumers. Despite robust sales in Asia, slowing growth in the U.S. raises concerns about future performance.

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.