Swiss brand On plans $1 billion buyback through 2029, sets long-term targets

On Holding on Tuesday authorized ​its first share repurchase programme, ‌worth ​up to $1 billion through the end of 2029, and unveiled long-term financial targets, as it bets on growth in apparel, ‌sneakers and new sports categories.

US-listed shares of the company rose about 6% in premarket trading. Backed by Swiss tennis great Roger Federer, On has been broadening its reach, having signed French soccer ‌star Kylian Mbappe last week, a partnership that has raised the brand's profile ‌as it pushes into the world's most popular sport.

The maker of CloudTec running shoes is, however, battling slowing growth in its key Americas market, even as it seeks to chip away at the dominance of ⁠Nike, Adidas ​and Puma in ⁠soccer. Ahead of its investor day on Tuesday, On outlined its financial targets through 2029, including high-teens percentage annual ⁠constant-currency sales growth and net sales of at least 5.6 billion Swiss francs ($6.83 billion).

On expects third-quarter ​constant-currency revenue growth of about 17% and said its annual forecast excludes the benefit ⁠from tariff refunds. It expects up to 53 million Swiss Francs (about $65 million) in refunds in the current quarter. The ⁠company ​said it had received about 28 million Swiss francs in refund proceeds as of mid-August, when it reported second-quarter net sales below estimates, citing slowing growth in ⁠its Americas segment amid a tough macroeconomic environment.

On also reiterated its 2026 forecast for low-20% ⁠constant-currency sales growth, ⁠a gross margin of at least 65%, and an adjusted EBITDA margin of between 19.5% and 20%. ($1 = 0.8203 Swiss francs)