Switzerland-based On Holding AG is positioning itself to outperform global competitors following a crucial US Supreme Court ruling that struck down emergency government levies. As the sportswear sector grapples with shifting trade barriers, Martin Hoffmann, CEO indicated, a lower-than-anticipated 15 per cent tariff rate on imports from key manufacturing hubs like Vietnam and Indonesia represents a significant ‘upside’ to existing fiscal guidance. While rivals like Adidas warn of hits exceeding €400 million due to currency and tariff pressures, On’s strategic avoidance of high-tariff production regions has allowed it to maintain a trajectory of aggressive expansion without passing increased costs to its affluent consumer base.
Innovative manufacturing offsets pricing pressure
The brand is doubling down on operational efficiency through its new LightSpray production facility in South Korea, moving automated manufacturing closer to high-demand Asian markets. This technological pivot aims to stabilize gross margins at a record 63.0 per cent for 2026, even as broader inflation erodes the purchasing power of lower-income shoppers. Unlike traditional retailers burdened by excess inventory, On has successfully leveraged disciplined holiday season execution and a limited discounting strategy to drive a 22.6 per cent increase in Q4, FY26 sales, reaching CHF 743.8 million.
Capitalizing on the ‘Health-as-Wealth’ shift
The sportswear giant is currently executing the final phase of its three-year strategy, targeting at least 23 per cent constant-currency sales growth in 2026. This confidence is rooted in a fundamental market trend where premium performance apparel has replaced traditional status symbols. With brand awareness approaching 30 per cent globally, On plans to open 15 new flagship stores this year, focusing on immersive ‘brand worlds’ that bridge the gap between high-performance athletics and luxury lifestyle retail.
On Holding AG is a Swiss performance sportswear leader known for its proprietary CloudTec® and LightSpray technologies. Operating in over 80 countries, the brand primarily targets affluent athletes and lifestyle consumers. With 2025 revenues surpassing CHF 3 billion, the firm aims to double its global footprint by late 2026 through aggressive DTC expansion and technical apparel diversification.
