On Holding set a new growth plan at its Zurich investor day on Sept. 22, 2026, putting a bigger sportswear business and a wider product range behind its premium positioning. The Swiss company is targeting at least CHF 5.6 billion in annual sales by 2029 while seeking to preserve the margins that have distinguished its running-shoe business. The challenge is to broaden the brand without making it ordinary.
The targets raise the stakes
In its investor-day release, On set an ambition for high-teens annual net-sales growth on a constant-currency basis from 2026 through 2029. It said it aims to keep gross margin at 65% or higher throughout that period and reach an adjusted EBITDA margin of at least 22% in 2029. Those are company targets, not achieved results or guarantees.
On also authorized a first share-repurchase program of up to $1 billion through 2029. Reuters reported the buyback and long-range targets independently. Authorization permits purchases; it does not mean the full amount has been spent.
For 2026, On reiterated expected constant-currency sales growth in the low-20% range, a gross margin of at least 65% and an adjusted EBITDA margin between 19.5% and 20%. It expects third-quarter constant-currency sales growth of about 17%. The company attributed part of that near-term pace to deliberate management of wholesale shipments while its direct-to-consumer business remains strong.
The targets require careful comparison. In August, On projected 2026 net sales of CHF 3.47 billion to CHF 3.56 billion at then-current exchange rates. Its growth ambition through 2029 is stated in constant currency, while the CHF 5.6 billion sales figure is an absolute target at current rates. Exchange-rate changes could alter reported sales even if underlying demand follows the plan. Adjusted EBITDA is also not the same as net income; On provides a reconciliation of that non-IFRS measure in its disclosures.
From running brand to broader wardrobe
On’s plan names running, sneakers and apparel as the principal growth pillars, with football and golf added as new categories. The company describes a consumer it calls the “Movement Class,” for whom athletic wear serves as identity as well as equipment. That is a marketing thesis, not a measured demographic in the release.
The strategic inference is clear: a customer who buys an On running shoe could become a repeat buyer of everyday footwear and clothing. That would expand spending per customer and reduce dependence on a single technical footwear purchase. It would also place On in more crowded fashion and lifestyle decisions, where design, distribution and cultural relevance matter alongside performance.
The company has evidence of momentum but not proof of the 2029 outcome. Its second-quarter update said apparel, Asia-Pacific and direct-to-consumer sales were expected to outperform its overall business in the second half of 2026. It also said it was managing wholesale sell-in to protect full-price sales. Those decisions help explain the high-margin ambition: growing through discount-heavy distribution could undermine the premium economics the plan assumes.
Where the premium model will be tested
The most consequential question is not whether On can attach its name to more sports. It is whether products in those categories can command the same willingness to pay without overextending the brand. Retail expansion, athlete partnerships and new materials can increase visibility, but each adds execution demands. On’s own risk disclosure notes uncertainty around new-category competition, consumer tastes, supply chains, manufacturing capacity and tariffs.
There is also a channel trade-off. Owned stores and online sales give On more control over presentation and customer data, while selective wholesale can introduce the brand to people it would not reach alone. A strategy that leans too far toward either side could limit scale or dilute the experience. On says its model relies on both direct-to-consumer and strategic wholesale partners; the mix over time will be more informative than the label attached to either channel.
The buyback adds another test of discipline. Returning cash to shareholders alongside investment in products and stores can signal management’s confidence, but it does not remove the need to fund innovation. The announced 2029 margin and sales figures should therefore be read as a demanding operating scorecard, not as a forecast NextNow endorses.
For brand and retail leaders, the useful measure will be whether On can keep full-price demand and product distinction as its assortment broadens. Its September plan makes the ambition explicit. Sales mix, margins and repeat demand in the next reporting periods will show whether premium can scale with it.