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Near-term bullish on ONON as the mix shift to DTC and margin gains support valuation; catalysts: product launches and new stores within 2–6 weeks.
What happened and why it matters
On Holding posted a robust Q2 2026, with net sales of CHF 850.3 million, up 13.5% YoY and 21.6% CC, led by Direct-to-Consumer growth of 26% and a 45.7% DTC share. The company raised profitability with a 65.4% gross margin and 19.8% Adjusted EBITDA margin, guiding low-20% CC net-sales growth for 2026 and continued premiumization via store expansion and a strong product pipeline including Strike 2 and SURREAL foam, signaling further upside.
Solid CC growth, higher gross and EBITDA margins, robust DTC growth, and upside from a premium-product pipeline plus store openings typically drive near-term stock appreciation. The company also provides a credible 2026 guide and a pronounced shift toward higher-value DTC channels, which historically supports multiple expansion in premium-brand retailers.
Q2 net sales CHF 850.3m; up 13.5% YoY; CC +21.6%.
DTC sales CHF 388.4m; +26% YoY; 45.7% of net sales.
Gross margin 65.4%; adjusted EBITDA margin 19.8%; cash CHF 1,205.6m.
Outlook: 2026 CC net sales growth in low-20% range; 65%+ gross margin; 19.5–20% EBITDA.
Opened first stores in São Paulo and Copenhagen; APAC sustained momentum.
Category: Earnings. The release confirms strong quarterly execution, margin expansion, and a healthier DTC mix, supporting a premium-growth narrative and potential multiple re-rating on improving profitability and roadmap-driven product launches.
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