The brand, which sells premium-priced athletic shoes and apparel, posted fourth-quarter net sales of 743.8 million Swiss francs ($946 million), up 30.6% in constant currencies, and above LSEG estimates of 723.5 million francs.<\/p>\n
Over the full year, sales surpassed 3 billion francs for the first time, slightly ahead of estimates of 2.99 billion francs.<\/p>\n
The fast-growing brand said it sees 2026 net sales growing by at least 23% in constant currencies. At current spot rates, it said, this implies sales of at least 3.44 billion francs, however, sell-side analyst consensus had expected this year’s sales closer to 3.7 billion francs. The company sees an adjusted EBITDA margin of between 18.5% and 19%.\u00a0<\/p>\n
Stock Chart IconStock chart icon![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
<\/p>\n
On shares were flat year-to-date coming into Tuesday trading. <\/p>\n
On is now in the third and final year of its strategy to double sales<\/a> to 3.55 billion francs and increase EBITDA margin to at least 18% by 2026 in a quest to be “the most premium global sportswear brand.”<\/p>\n The company, which went public in 2021 on the New York Stock Exchange, has been able to grab market share from legacy competitors such as Nike<\/a> and Adidas<\/a> through innovative products and a focus on\u00a0performance footwear and apparel.<\/p>\n “We are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity, and performance,” said the company’s co-founder and executive chair, David Allemann. “On is uniquely positioned to deliver what this discerning consumer demands.”<\/p>\n Profitability also reached new highs over the full year, the company said.<\/p>\n In the quarter, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 31.8% to 131 million francs from, reflecting a margin of 18.8% and beating LSEG estimates of 112.4 million francs. The beat reflected operational efficiencies and the strength of the brands’ positioning, the company said.\u00a0<\/p>\n Asia-Pacific was the clear standout, with sales in the region growing 85.1% at constant currencies. The Americas and EMEA grew at 21.3% and 27.5%, respectively, in the three months ended December.\u00a0<\/p>\n “The strength of our premium strategy allows us to exceed our high aspirations while providing the flexibility to reinvest in the high-return areas that we expect will fuel our growth for years to come,” said CEO Martin Hoffmann in a statement.\u00a0<\/p>\n