On has raised its 2026 profit margin outlook after strong first-quarter sales, as its Zendaya partnership helped the sportswear brand attract younger female shoppers.
The Swiss sneaker and running brand said net sales rose 14.5 per cent to CHF 831.9 million (£745 million) in the three months to March 31, or 26.4 per cent on a constant-currency basis.
The business now expects its adjusted EBITDA margin to reach between 19.5 per cent and 20 per cent this year, up from its previous forecast of 18.5 per cent to 19 per cent.
On maintained its target of at least 23 per cent constant-currency sales growth for the full year, which it said would take annual sales to at least CHF 3.51 billion.
Co-chief executive Caspar Coppetti told Reuters the brand was seeing “very encouraging signs” from its push into apparel and sneakers, with its Zendaya collaboration helping On appeal to younger women.
The actor, known for Euphoria and Dune, became a brand ambassador for On as the retailer looks to broaden its appeal beyond performance running.
On said adjusted EBITDA jumped 45.4 per cent to CHF 174.3 million during the quarter, while its adjusted EBITDA margin rose to 21 per cent from 16.5 per cent a year earlier.
Its gross profit margin also climbed to 64.2 per cent, boosted by its premium strategy, new product launches and lower distribution costs.
The retailer’s Cloudtilt sneaker was the best-selling shoe at Foot Locker Europe in March, according to Reuters.
Asia-Pacific delivered the strongest regional growth, with sales up 61.4 per cent on a constant-currency basis as On expanded in China and South Korea.
However, growth in the Americas, which accounts for more than half of group revenue, slowed to 17.1 per cent on a constant-currency basis, prompting some analysts to flag concerns over its longer-term momentum.
On recently changed its senior leadership, with co-founders Coppetti and David Allemann taking over as joint chief executives on May 1.
Former Ahold Delhaize executive Frank Sluis also joined the business as chief financial officer.
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