Challenger On Lifts Margin Outlook on Strong Sales
Retailers and buyers of premium athletic footwear should weigh the brand's expanding share against Nike and Adidas.
Updated on Nov. 10, 2026 in Retail
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Swiss running shoe brand On reported third-quarter sales of 931.4 million Swiss francs ($1.14 billion), beating analyst estimates of 929.3 million francs, and raised its annual gross margin forecast. Retailers and footwear operators tracking premium athletic demand are affected by the stronger outlook.
Why it matters
Sales beat estimates on new product launches and celebrity collaborations across premium shoes and apparel, showing that brand-driven demand can outpace established rivals in the category. On has also taken market share from Nike and Adidas, which signals intensifying competition for premium athletic footwear shelf space and consumer spend.
Third-quarter sales reached 931.4 million Swiss francs ($1.14 billion), narrowly above the 929.3 million franc analyst estimate. The company now expects a fiscal 2026 gross margin near 67.5%, or about 66% excluding US tariff refunds, up from its earlier 65% floor.
The players
On
Swiss running shoe and apparel brand known for its premium athletic footwear, which has expanded its store footprint globally and taken share from Nike and Adidas.
Kylian Mbappe
French professional soccer star whose recent signing with On is a celebrity collaboration supporting the brand's premium product push.
The details
New product launches and celebrity collaborations, including the recent signing of French soccer star Kylian Mbappe, drove demand across premium shoes and apparel. On has grown quickly and expanded its store footprint globally, and its gross margin outlook reflects both product mix and one-time tariff refunds that lift results before excluding them. Operators should note that the headline margin figure includes those refunds, which the company separately quantifies at roughly 1.5 percentage points.
Timeline
September 2026: On authorized its first share buyback plan of up to $1 billion, running through the end of 2029.
November 10, 2026: On reported third-quarter results and raised its annual gross margin forecast.
Fiscal 2026: The company's expected gross profit margin target period.
Market Landscape
On has taken market share from Nike and Adidas in premium athletic footwear while expanding its global store footprint. The brand's strong quarter places it among the faster-growing challengers in a category long dominated by the two incumbents.
Retailers carrying premium athletic footwear should monitor On's expanding store footprint and product launches when planning assortments. Operators should factor the company's sales momentum and margin guidance into supplier negotiations and inventory planning for the coming fiscal year.
The takeaway
Premium footwear demand is being shaped by brand-led launches and celebrity partnerships, so retailers should review how much assortment space they give to fast-growing challenger brands. Track the next quarterly report for whether the margin outlook holds once tariff refunds are excluded.
Further reading
For broader context on how premium footwear brands are competing for shelf space, see the Retail section.
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