Sportswear brand On is 'listening and learning' in China after Mbappe's misstep

Sportswear brand On is in close contact with its China teams and with soccer star Kylian Mbappe, the face of its ‌push into the sport, after his comments referring to Mao Zedong caused a backlash there, co-CEO Caspar Coppetti said on Tuesday. "We're speaking to government, we're speaking to landlords, we're obviously speaking to Kylian and his team, and most importantly, we're listening to the consumer," Coppetti said in an interview with ‌Reuters.

Asked how the Swiss company is changing its approach to marketing in China given the backlash, Coppetti did not provide details, but ‌said the company planned to launch its first soccer products in 2027. On signed the French player as a global ambassador in September, entering the world's biggest sport in a move that raised the running shoe brand's profile. "We're in listening and learning mode right now," said Coppetti.

ON EXPECTS SALES GROWTH TO ACCELERATE On raised its 2026 gross ⁠margin forecast ​after beating third-quarter sales estimates, as ⁠new shoe launches and a clothing collection advertised by American actor Zendaya drove sales.

However, the company stuck to its annual sales forecast of between 3.47 billion Swiss francs and ⁠3.56 billion Swiss francs ($4.24 billion and $4.35 billion). On's US-listed shares were down about 7% in premarket trading, having already fallen nearly 20% so far this year.

"The ​poor stock performance likely reflects some disappointment that guidance was not raised and the tension between investors wanting faster growth and some ⁠lift on the bottom line," said Neil Saunders, managing director at GlobalData. The company has grown fast and expanded its store footprint globally, taking market share from bigger rivals such ⁠as ​Nike and Adidas.

It expects fourth-quarter sales growth to accelerate, even as it avoids discounting, and said its holiday campaign was underway and new products were gaining traction. For the quarter ended September 30, sales in the Americas, which account for more than half On's revenue, were up ⁠about 12.4% on a constant currency basis, after rising 21% a year ago.

On now expects fiscal 2026 gross profit margin to be ⁠around 67.5%, or about 66%, excluding ⁠US tariff refunds, compared with its previous forecast of at least 65%. The company posted third-quarter sales of 931.4 million Swiss francs, compared with analysts' estimates of 929.3 million Swiss francs, according to data compiled by ‌LSEG.

($1 = 0.8192 Swiss francs)