On (ONON) Q2 2026 earnings summary

Executive summary

• Achieved Q2 net sales of CHF 850.3 million, up 21.6% at constant currency and 13.5% year-over-year, driven by strong DTC growth and premium brand positioning.

• DTC channel grew 34.3% at constant currency (26% y/y), now representing 45.7% of total sales, with e-commerce and retail outperforming expectations in all regions.

• Maintained industry-leading profitability with a gross margin of 65.4% and adjusted EBITDA margin of 19.8%.

• Disciplined wholesale management in a promotional environment, especially in the Americas, to protect full price integrity and set up for future innovation launches.

• Continued global expansion with new flagship stores in key cities, including São Paulo and Copenhagen, and strong performance in EMEA and APAC.

Financial highlights

• Q2 net sales: CHF 850.3 million (+13.5% y/y; +21.6% constant currency).

• DTC sales hit CHF 388.4 million, up 34.3% at constant currency (26% y/y); DTC now 45.7% of total sales.

• Gross profit: CHF 555.7 million (+20.6% y/y); gross margin: 65.4% (up from 61.5%).

• Adjusted EBITDA: CHF 168.1 million (+23.5% y/y); margin: 19.8% (up from 18.2%).

• Ended quarter with CHF 1.2 billion in net cash after generating CHF 185.2 million in cash and maintaining net working capital below 20% of sales.

Outlook and guidance

• Full-year 2026 constant currency net sales growth expected in the low 20s percentage range, with DTC channel to outperform wholesale.

• Gross margin outlook raised to at least 65%, reflecting strong DTC momentum and premium execution.

• Adjusted EBITDA margin guidance maintained at 19.5%-20%, with continued investment in growth and innovation.

• Guidance excludes potential tariff refunds in H2 2026.

• Wholesale actions in Q2 and Q3 to impact short-term growth, but expected to support long-term premium positioning and innovation pipeline.