On Targets 5.6 Billion Francs by 2029, Adds Golf to Soccer Push

On Holding AG told investors on Tuesday that it expects net sales of at least 5.6 billion Swiss francs in 2029 — approaching $7 billion — as the Swiss sportswear company lays out a three-year plan built on what its leadership calls a "premium playbook."

The target, announced at an investor day inside the company's Zurich headquarters, implies constant currency growth in the high-teens over the next three years. On also committed to an "industry-leading" gross profit margin of 65 percent or more throughout that period and set a goal of an adjusted EBITDA margin of at least 22 percent by 2029.

The plan rests on three growth drivers: multi-dimensional top-line expansion across verticals, regions and channels; an industry-leading gross margin; and operating cost leverage as the business reaches greater scale.

Soccer first, golf next

The strategy leans heavily on new sports categories. On Friday, the company signed Real Madrid forward Kylian Mbappé as the face of its new football category, ending an athlete-Nike relationship that began in 2006, when Mbappé was eight years old, according to his personal website. Mbappé said in a statement that the "opportunity to build something entirely new together that will help shape tomorrow's game" drew him to On.

The deal has already paid off in visibility. David Allemann, founder and co-chief executive officer, told investors the Mbappé announcement generated $8 billion in earned media reach — the biggest story in the company's history.

"In Mexico, 312-times our baseline reach," Allemann said. "In China, 344-times our baseline reach. Plus, 50.5 percent share of voice in all football-related media mentions. Seventy-two percent of new followers we attracted since the announcement are under the age of 35, and in organic social media, over 4,000 times engagement than our comparable average. This is what football does to a brand's relevance before we have sold a single boot."

The first On Football product range is expected in 2027.

Days after the Mbappé deal, On added another category: golf, launching in early 2027. Co-CEO Caspar Coppetti said the move is not simply about market size, but about "radical innovation on the pitch" at the premium end of sport. In golf, On aims to "disrupt" the category by bringing its premium "playbook into new arenas with products that perform at the highest level and experiences that connect course, stadium and street."

"It is no secret that many golfers are already playing in On," Coppetti said. "What you might not know is that our chief design officer, Thilo Brunner, is a golf fanatic as is our president and chief operating officer Scott Maguire. And, our partner, Roger [Federer] now plays more golf than tennis."

Federer, who appeared at the investor day, endorsed the expansion. "Yes, retirement is good," Federer said. "You should try it out, by the way, [retirement] gives you more time to play golf. And obviously, I'm very excited to see that we have officially moved into golf. And I think we can maybe also use the blueprint from tennis when it comes to golf. I'm looking forward to everything that's to come."

Reporting shift and near-term targets

Chief financial officer Frank Sluis announced On will move to U.S. dollar reporting as early as 2027. "The majority of our net sales, product costs and operating costs sit outside Swiss francs and reporting in francs has meant a significant part of what you see every quarter is translation," Sluis said. "Moving to dollars puts the reporting currency closer to the economics of the business and aligns to our share price currency."

Over 75 percent of absolute net sales growth is planned to come from three priorities: run, lifestyle — led by the company's sneaker ambition — and apparel.

On reiterated its full-year 2026 outlook: constant currency net sales growth in the low-20 percent range, a gross margin of at least 65.0 percent and an adjusted EBITDA margin of 19.5 percent to 20.0 percent. The company expects up to $65 million in tariff refunds in the third quarter of 2026, benefiting that quarter's reported gross profit but excluded from the outlook.

For the third quarter of 2026, On guides to constant currency net sales growth of around 17 percent, reflecting disciplined wholesale sell-in execution introduced with its second-quarter results and continued momentum in the direct-to-consumer channel.

"Our outlook firmly establishes On as a high-quality earnings compounder," Sluis said. "The demand is premium and multi-dimensional, with strength across all verticals and every region and every channel contributing."