On targets sales growth through 2029 as it expands into football category
Swiss premium sportswear brand On has unveiled its "next chapter", setting out a three-year growth plan focused on raising margins, developing its DTC and wholesale channels, and entering new categories – including football, which will see the company tapping into one of the UK’s most commercially significant sports segments.
At its investor day, the sportswear brand announced new ambitious annual sales targets, which would see it grow in the upper-teen percentage range at constant currencies from 2026 to 2029, with expectations of final-year revenue of at least CHF5.6 billion (£5.1 billion) at current exchange rates.
The company is also targeting an adjusted revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) margin of at least 22% by 2029, compared with its 2026 guidance of 19.5% to 20%. Adjusted EBITDA is expected to grow by more than 20% annually across the three-year period.
The group kept its 2026 forecast for low-20% growth in sales on a constant-currency basis unchanged, although it expects growth of around 17% in the third quarter, reflecting controlled wholesale sell-in and continued DTC momentum.
“Our outlook firmly establishes On as a high-quality earnings compounder. The demand is premium and multi-dimensional, with strength across all verticals, every region and every channel contributing,” Frank Sluis, CFO of On, said.
Following the company's announcement, shares in the company on the New York Stock Exchange rose 6.4% in US pre-market trading, signalling investor support.
On also plans to keep its gross profit margin at 65% or above. As the company grows, it expects improved efficiency to reduce operating costs as a proportion of sales, which should allow it to raise profit margins while continuing to invest in product development, stores and customer experiences.
“We are on track to significantly overachieve our targets given at the last Investor Day in 2023,” commented Caspar Coppetti, Founder and Co-CEO of On. “For the period through 2029, we are committing to premium as our north star, staying focused on the long term, and executing on each turn of the On Premium Playbook.”
On’s board has also approved a share buyback programme worth up to $1 billion (£750 million), running through December 2029, in another sign of its faith in the company’s future.
On expands into football category
While the company did not disclose UK-specific sales targets within its global plan, its recent expansion into the football category gives On a stake in a category that has seen renewed attention from brands and retailers following the 2026 FIFA World Cup earlier this year.
As World Cup fever took hold in the UK, Debenhams Group’s Boohoo saw football-related product sales increase by 1,827% from May to June, while searches are up 600%.
A whole range of brands and retailers, from Puma to Clarks and Sports Direct tapped into the hype, capitalising on one of football’s biggest tournaments.
As part of its expansion into the football category, On announced that it had signed a long-term deal with French football star Kylian Mbappé, thereby ending his 20-year partnership with Nike.
Mbappé will now be testing future footwear and apparel alongside On’s product teams, while Swiss international and FC Barcelona player Sydney Schertenleib will also support product development. Former Arsenal player Thierry Henry has meanwhile been appointed Director of Football.
