ON (NYSE:ONON) outlined a three-year growth plan centered on premium pricing, product innovation, retail expansion and new sports categories, targeting at least CHF 5.6 billion in net sales and an adjusted EBITDA margin of 22% or higher by 2029.
At its Investor Day in Zurich, the Swiss sportswear company said it expects to generate high-teens constant-currency annual sales growth through 2029 from a 2026 base of roughly CHF 3.5 billion. Management said the plan would add more than CHF 2.1 billion in sales and position the company as an approximately $7 billion global sportswear brand at current exchange rates.
“We have never pursued growth for growth’s sake,” Coppetti said. “Growth has always been a result of the On premium playbook.”
Financial targets and capital returns
The company said it expects to maintain gross margin above 65% through 2029 while growing adjusted EBITDA faster than revenue. It projected adjusted EBITDA growth of more than 20% annually over the period.
For 2026, On reiterated its prior outlook for sales growth in the low-20% range. Chief Financial Officer Frank Sluis said the company expects approximately 17% constant-currency growth in the third quarter, reflecting actions in the wholesale channel and continuing direct-to-consumer strength.
Management also announced a framework to repurchase up to $1 billion of shares between 2026 and 2029. The company said investments in innovation, products, brand, markets, capabilities and retail expansion remain its first capital-allocation priority. It plans to maintain a net cash position.
Sluis said On expects to shift its reporting currency from Swiss francs to U.S. dollars as early as 2027, subject to systems and process preparation. He said a dollar reporting currency would better reflect the geographic mix of sales, product costs and operating expenses and align with the currency of its share price.
New sports: football and golf
On said it will enter football with a broader market entry planned for 2027. The company is working with Thierry Henry, its director of football, as well as footballers Kylian Mbappé and Sydney Schertenleib. Management said its forthcoming performance boot will use LightSpray, an automated upper-production technology that sprays an upper in a continuous filament.
Coppetti said football will expand the company’s global relevance, particularly in South America, Africa and Southeast Asia. The company plans limited football drops in 2027, followed by inline portfolios for cleats and performance all-day products in 2028, according to Sluis.
On also plans to enter golf with a head-to-toe offering in the first half of 2027. Coppetti described golf as a premium mass sport with roughly 150 million players and more than CHF 5 billion in annual equipment spending. Roger Federer, On’s co-entrepreneur and partner, said he has been involved in the golf footwear development process.
Management emphasized that football and golf are expected to make only a modest direct contribution during the 2029 planning period, while potentially creating brand awareness and halo effects for the existing business.
Run, sneaker and apparel growth engines
The company identified performance running, lifestyle sneakers and apparel as its three immediate growth engines. It expects those categories to contribute more than 75% of the planned net-sales addition through 2029.
In running, On is introducing the next generation of major franchises, starting with the Cloudsurfer 3. President and COO Scott Maguire said the company has organized its running portfolio around four sensations: support, soft, monster and fast. He said the Cloudsurfer 3, launching broadly Oct. 1 after an exclusive run-specialty release, combines the company’s CloudTec Phase technology with its new Surreal super foam.
On also highlighted LightSpray as a major technology platform. Maguire said LightSpray could represent 10% of footwear sales over time, though the company views its ability to support faster, more localized production and demand planning as a key strategic benefit.
Apparel, which management described as its fastest-growing category, is expected to triple over the next three years. The company’s apparel strategy is organized around dedicated performance products, essentials and “premium active” products, with a particular emphasis on women. Chief Design Officer Thilo Brunner said the company aims to combine performance functionality with more expressive active-lifestyle design.
Retail, wholesale and customer relationships
On plans to expand its retail fleet from approximately 80 stores today to 180 by 2029, adding 100 locations. Chief Global Markets Officer Rebecca Cai said the company expects direct-to-consumer sales to increase from around 45% of sales in 2026 to 50% by 2029, while wholesale remains the largest contributor to absolute sales growth.
Cai said retail represented more than 10% of first-half net sales and that stores currently have a payback period of about two years. The company said it is focusing on larger, higher-productivity stores that can better display apparel, footwear and newer categories.
Wholesale distribution will remain selective, according to management. On expects to expand in key accounts while targeting about 75% distribution in relevant doors rather than pursuing all available locations. The company said it has the highest average selling price and lowest discount rate in its U.S. wholesale data set.
Chief Customer Officer Alice Delahunt, who joined the company three weeks ago, said On plans to build more personalized digital and store experiences, develop a loyalty proposition and connect its retail and e-commerce systems. She said customers who engage across retail and digital channels deliver up to 4.5 times the lifetime value of single-channel shoppers in key markets.
About ON (NYSE:ONON)
On Holding AG, known as On, is a Swiss sportswear company that develops and sells performance footwear, apparel and accessories. The company is particularly recognized for its running shoes, which incorporate proprietary technologies such as CloudTec cushioning and Speedboard components designed to support comfort, responsiveness and energy return.
On serves athletes and consumers across categories including running, outdoor activities, training and everyday performance. Its products are sold through the company’s direct-to-consumer channels, including its website and branded retail stores, as well as through a network of wholesale partners in markets around the world.
On was founded in 2010 in Switzerland by Olivier Bernhard, David Allemann and Caspar Coppetti.
